Question
Your supermarket is selling 1000 containers of margarine a week at $1.50 each. You know that the price elasticity of demand for margarine is
Your supermarket is selling 1000 containers of margarine a week at $1.50 each. You know that the price elasticity of demand for margarine is -0.8. You decide to reduce the price by 10%. a. How many more margarine containers would you be selling that week?
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To solve this you can use the price elasticity of demand formula which is Percentage change ...Get Instant Access to Expert-Tailored Solutions
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
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