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13-According to a study, the price elasticity of shoes in the United States is 0.7, and the income elasticity is 0.9. a. Would you suggest that the Brown Shoe Company cut its prices to increase its revenue? b. What would be expected to happen to the total quantity of shoes sold in the United States if incomes rise by 10 percent?. 14. A book store opens across the street from the University Book Store (UBS). The new store carries the same textbooks but offers a price 20 percent lower than UBS. If the cross-price elasticity is estimated to be 1.5, and UBS does not respond to its competition, how much of its sales is it going to lose?
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