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April 3, 2021

Assume that you recently made a purchase on?Amazon.com. The next time you go to purchase this i

Assume that you recently made a purchase on Amazon.com. The next time you go to purchase this item, let’s say you find out that the price has increased by X dollars. How would you respond to this price increase? Would you say this item is Relatively Elastic, Relatively Inelastic, or Unitary Elastic? Explain using the Determinants of thePrice Elasticity of Demand (see page 83). Think about how the increasing popularity of shopping online impacts your response.

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