homework help If my product has an elasticity of -2 and I raise my price by 10% then: It will change my product to an...
homework help
If my product has an elasticity of -2 and I raise my price by 10% then: It will change my product to an inelastic product My sales will fall by 20% My sales will fall by 10% My sales will increase by 20%
Homework Answers
The change in demand is equal to Price Elasticity of Demand × Percentage Change in Price (PED×%∆ P)
PED= −2
%∆P = 10
Then the change in demand = −2×10= −20%
The demand decrease by 20%
Answer: My sales will fall by 20%
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