Question
Suppose you calculate that your price elasticity of demand is currently -1.5. Your boss wants you to increase the company's revenues by 5%. Assuming a
Suppose you calculate that your price elasticity of demand is currently -1.5. Your boss wants you to increase the company's revenues by 5%. Assuming a constant elasticity of demand equal to -1.5, how much (in percentage terms) would you have to change your price in order to accomplish this goal? Show all work and calculations.
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
