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Assume that the price of a product increases from $9.50 to $10.50 and this causes the quantity demanded to drop from 2,050 units to 1,950 units.
A. Calculate the total revenue at each price level.
B. Calculate the price elasticity of demand between these two points.
C. Is this demand elastic or inelastic? Explain how you know this.
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This was a major hit on the economy and increased electricity prices." Do you agree with this assessment of the carbon tax policy? Provide at least two reasons why this criticism of the carbon tax is misplaced.
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