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Suppose the Lethbridge Computer Company Decides to Increase the Quantity

Question 36

Multiple Choice

Suppose the Lethbridge Computer Company decides to increase the quantity of computers it sells by 6 percent. If the price elasticity of demand is 3.5, the company must


A) raise the price of a computer by 1.714 percent.
B) raise the price of a computer by 0.21 percent.
C) lower the price of a computer by 0.21 percent.
D) lower the price of a computer by 1.714 percent.
E) lower the price of a computer by 0.58 percent.

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