A firm started advertising its product and this changed the products elasticity from - 2 to -1.5.
Question:
A firm started advertising its product and this changed the product’s elasticity from - 2 to -1.5. If, prior to advertising, the firm charged $10, the firm should
a. Raise price from $10 to $15.00.
b. Reduce price from $10 to $6.67.
c. Raise price from $10 to $13.33.
d. Reduce price from $10 to $7.50.
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Related Book For
Managerial Economics
ISBN: 9781337106665
5th Edition
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward
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