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The short-run elasticity of demand for a consumer product is measured from NPD data at 2.9 a. What is the expected unit sales increase to

The short-run elasticity of demand for a consumer product is measured from NPD data at 2.9

a. What is the expected unit sales increase to result from a 10 percent price decrease?

b. If the contribution margin for the value chain is 60 percent, what is the volume hurdle for a 10 percent price decrease?

c. Should the value chain expect a 10-percent-off sale to improve its profits?

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