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[5] In 2016 the US Department of Transportation banned the use of e-cigarettes on commercial flights

Learning Objectives Learning Objectives By the end of this section, you will be able to do the following: Analyze how price elasticities impact revenue Evaluate how elasticity can cause shifts in demand and supply Predict how the long-run and short-run impacts of elasticity affect equilibrium Explain how the elasticity of demand and supply determine the incidence of a tax on buyers and sellers Studying elasticities is useful for a number of reasons, pricing being most important

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