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To: Terry Maloney who wrote (9)12/1/2001 6:05:56 PM
From: Don Lloyd  Read Replies (2) | Respond to of 445
 
Terry -

...you've brought elasticity into the picture...

Not at all, it was in the original. You don't seem to appreciate all the simplifying assumptions that were made. -g-

The annual market demand schedule for your diamonds is presumed to be time-invariant, to have a perfect unitary price elasticity of demand and no possibility of price discrimination, and to have a demand independent of previous sales.

Regards, Don