You have the following information for your product: The price elasticity of demand is -2.0.
Question:
• The price elasticity of demand is -2.0.
• The income elasticity of demand is 1.5.
• The cross-price elasticity of demand between your good and a related good is -3.5.
What can you determine about consumer demand for your product from this information?
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Demand is elastic and thus revenues will fall if you increase the price and rise i...View the full answer
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