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a. Calculate price elasticity given the following information. Is the curve elastic, inelastic or unitary elastic?...

a. Calculate price elasticity given the following information. Is the curve elastic, inelastic or unitary elastic?

Original Quantity: 16125 lbs of sugar

New Quantity: 4000 lbs of sugar

Original Price: $0.99/lb

New Price: $3.99lb

b. (6 pts) Given the elasticity calculated in part a, will the seller increase or decrease their revenue if they increase the price of sugar?

c. (8 pts) Explain the determinants of elasticity.

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