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Manny’s Merchandising can custom print logos

Author:
January 5th, 2018

Manny’s Merchandising can custom print logos onto coffee mugs. It sells it most popular style for $10 and has a marginal cost, including a blank mug and the printing, of $6. Manny recently ran a diff-in-diff experiment and determined your demand elasticity is -5. Should Manny raise or lower price?

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