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The ABC Company manufactures digital clock radios and sells on average 3,000 units monthly at $25 each to retail stores. It's closest competitor produces a similar type of radio that sells for $28.
A) If the demand for ABC's products has an elasticity coefficient of -3, how many will it sell per month if the price is lowered to $22?
B) The competitor decreases its price to $24. If cross-price elasticity between the two radios is 0.3, what will ABC's monthly sales be?
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