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The price of good X increases from $10 to $12, and the quantity demanded decreases from 500 units to 400 units.
a) Calculate the PED for good X. (Show steps) b) Is demand elastic or inelastic? Explain. c) What happens to total revenue? Show your calculation. (Answer: PED = -1; Unit elastic; Total revenue unchanged – $5,000 before and after.)
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