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Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is –3/10, and the price of parking is $10 per day. additionally, suppose that your mc is zero, and your capacity has been 100% full each day by 8 am over the last month. since demand is , and the lot is at capacity, is the optimal pricing strategy. since demand is ( elastic / inelastic / unit elastic) , and the lot is below capacity, (increased / decreased / unchanged) is the optimal pricing strategy.
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