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In the imperfect competitive market of jeans, Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price. Quantity sold jumped 4 more jeans from the previous 100 figure the previous month.
A. Calculate the arc price elasticity of demand for Lean Jeans.
Based on the previous question and using markup pricing,
B) If marginal cost per unit is $20, was the original $50 price optimal?
C) What would be the optimum price?
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