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Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –1.8, and the price of parking is $7 per day. Additionally, suppose that your MC is zero, and your capacity has been 80% full at 9 AM each day over the last month. Since demand is, and the lot is below capacity, is the optimal pricing strategy.
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Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown busine...
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