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The Elasticity of Demand for Fitbits Is 3 and the Elasticity

question 19

Essay

The elasticity of demand for fitbits is 3 and the elasticity of supply is 1.5. Suppose that a breakthrough in the technology used in the production of fitbits increased the supply of fitbits by 20%. Calculate the percentage change in the equilibrium price of fitbits.


Definitions:

Olfactory Cortex

The region of the brain responsible for processing smell, located within the temporal lobe and key to the sense of smell.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, associated with decision making, complex thought processes, and moderating social behavior.

Smell Processed

The mechanism by which olfactory information is detected by the nose and interpreted by the brain.

Olfactory Bulb

The olfactory bulb is a structure located in the forebrain that processes information about odors detected by cells in the nasal cavity.

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