Question: You want to price posters at the Poster Showcase profitably

You want to price posters at the Poster Showcase profitably and run an experiment to estimate the demand elasticity. You raise the price of kitten posters 10% but keep your dog poster prices unchanged. After a month, kitten poster unit sales fall by 12%, but dog posters rise by 8%.Why might the elasticity estimate from this experiment be biased?


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  • CreatedFebruary 13, 2014
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