Question
Experimenting with small changes in the price they usually charge for a gadget, Gidget's Gadget Company estimates that the elasticity of demand for their product
Experimenting with small changes in the price they usually charge for a gadget, Gidget's Gadget Company estimates that the elasticity of demand for their product is ED = -0.4. Should Gidget's Gadget Company change its pricing policy? Can you please explain. Thank you!
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
