Question
If a product's price changes from $1,800 to $1,620, and the market demand changes from 300 per month to 315 per month (a) what is
If a product's price changes from $1,800 to $1,620, and the market demand changes from 300 per month to 315 per month
(a) what is the price elasticity of demand for this product?
(b) Interpret this price elasticity, and
(c) briefly discuss how this information affect marketer's pricing decision?
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a To calculate the price elasticity of demand Change in Quantity 315 300300 5 Change in Price 1800 1...
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
