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Question 16.1: Phil’s Hardware in Dry Hole, Texas, is the only store within...

Phil’s Hardware in Dry Hole, Texas, is the only store within 40 miles that sells plumbing supplies. In the average year, Phil sells 24 sinks at $80 each. Phil decides to cut his prices to $75, and the next year he sells 25 sinks. Is Phil’s market for sinks elastic or inelastic?

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Verified Answer:

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