Q1 what are the most important things to consider when

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Q1. What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic? For one whose demand as well as is inelastic?

Q2. How would you advise the baker as to whether he should (a) employ four assistants on a Saturday; (b) extend his shop, thereby allowing more customers to be served on a Saturday morning?

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