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A car tire costs a dealer $100 at wholesale prices. If the

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4. A car tire costs a dealer $100 at wholesale prices. If the demand elasticity is -2 what is the optimal price the dealer should sell the tire to the customer?

© BrainMass Inc. brainmass.com September 19, 2018, 3:54 am ad1c9bdddf - https://brainmass.com/economics/elasticity/car-tire-costs-dealer-wholesale-prices-185436

Solution Summary

Conceptual problem on demand elasticity and profit maximization.

$2.19