Question
Two clothing stores have a big sale: 20 %of everything in the store. After the sale, Store 1 finds that its total revenue has increased,
Two clothing stores have a big sale: 20 %of everything in the store. After the sale, Store 1 finds that its total revenue has increased, while Store 2 finds out that total revenue has decreased. What does this tell you about the price elasticity of demand for the clothes in each store?
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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
