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The question says, Sipho's Electronics sells a basic unlocked smartphone for $125. Sipho's buys these phones for $75 each. Price elasticity at their current selling
The question says, "Sipho's Electronics sells a basic unlocked smartphone for $125. Sipho's buys these phones for $75 each. Price elasticity at their current selling price is estimated at -2.1.Sipho's is thinking about raising its selling price by $10. If the change in quantity sold just matches the percent profit breakeven for this situation, how much will Sipho's profit change after the price increase?" Which tool should you use to answer this question? Neither-just put down $0. Elasticity, because the question does not mention a change in variable cost. Percent profit breakeven, because the question is about profit. Price elasticity, because I need to know the change in quantity
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