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What is price elasticity of demand

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1. What is price elasticity of demand? How is it measured? If the price elasticity is -3 and $300 is the marginal cost of product X, what should be the optimal sale price? (Hint: apply the mark-up rule)

2. What is meant by price discrimination? What are the conditions to make price discrimination effective? Discuss answers with examples from the Airline Industry.

Reference no: EM131159798

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