Suppose there is a new tax on data usage the cum-tax, Business Economics

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Suppose there is a new tax on data usage the cum-tax

Suppose there is a new tax on data usage. The cum-tax monthly bill increases by 15%.

i) If the price elasticity of demand is -0.45, how much does the quantity demanded change?

ii) Statement: the data plan providers are definitely worse off. True, false, uncertain, or not enough information? Why?

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Business Economics: Suppose there is a new tax on data usage the cum-tax

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Business Economics: Suppose there is a new tax on data usage the cum-tax

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