Question
Your company is moving into a new area with 25% lower income on average. You've estimated that your product has an income elasticity of -0.5.
Your company is moving into a new area with 25% lower income on average. You've estimated that your product has an income elasticity of -0.5. By what percentage will your sales increase or decrease?
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Managerial Economics Foundations of Business Analysis and Strategy
Authors: Christopher Thomas, S. Charles Maurice
12th edition
1260004759, 9781260004755, 78021715, 78021718, 78021901, 978-0078021909
