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Country Street has increased its market share by reducing the prices of a range of its products. For instance, woollen cardigans that were $149 now
Country Street has increased its market share by reducing the prices of a range of its products. For instance, woollen cardigans that were $149 now sell for $99, increasing sales from 10,000 to 80,000 a year. (i) Show why this strategy has been so successful by calculating the price elasticity of these cardigans at a price of $149 and comment
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
