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you are paid a sales commission based on your total

Questions

1. Derive the equation for your demand curve from the two price and sales points discussed above.

2. Are you currently operating in the elastic or inelastic portion of your demand curve?

3. You are paid a sales commission based on your total sales. What price would you charge to maximize your bonus?

4. Is this price likely to be optimal from your firm's standpoint, which has profit maximization as a goal?

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