6. Assume the price elasticity of demand for Master chips is -2.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will: * O Decrease by 39 percent. Increase by 47 percent. Increase by 39 percent. Increase by 24 percent.

6. Assume the price elasticity of demand for Master chips is -2.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will: * O Decrease by 39 percent. Increase by 47 percent. Increase by 39 percent. Increase by 24 percent.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...

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Question

6. Assume the price elasticity of demand for Master chips is -2.0. If the company
decreases the price of each bag of chips from $1.89 to $1.49, the number of bags
sold will: *
O Decrease by 39 percent.
Increase by 47 percent.
O Increase by 39 percent.
O Increase by 24 percent.

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