An end-of-aisle price promotion changes the price elasticity of a good from ?3 to ?4. Suppose the normal price is $18, which equates marginal revenue with marginal cost at the initial elasticity of -3.

What should the promotional price be when the elasticity changes to -4? (Hint: In other words, what price will equate marginal revenue and marginal cost?)

$20.80

$9.60

$16.00

$12.80

10 . Individual Problems 6-3 An end-ofaisle price promotion changes the price elasticity of a good from 3 to 4. Suppose the normal price is $13, which equates marginal revenue with marginal cost at the initial elasticity of 3. What should the promotional price be when he elasticity changes to 4? (Hint: In other words, what price will equate marginal revenue and marginal cost?) 0 $20.30 0 $9.50 0 $15.00 0 $12.30