Price Elasticity of Demand Problem Business has price elasticity of -1.5 They sold 300 units at $10 each If they cut the unit price by 5% how many units would they sell and what would be the effect on revenue?

Price Elasticity of Demand Problem Business has price elasticity of -1.5 They sold 300 units at $10 each If they cut the unit price by 5% how many units would they sell and what would be the effect on revenue?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Price Elasticity of Demand Problem

Business has price elasticity of -1.5

They sold 300 units at $10 each

If they cut the unit price by 5% how many units would they sell and what would be the effect on revenue?

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