Question: 7) You are a financial manager. You consult with an economist to find how a reduction in sales price will help you sell more units

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7) You are a financial manager. You consult with an economist to find how a reduction in sales price will help you sell more units of product A. The economist projects you will sell 30% more units of product A if you discount the price by 20%. Should you reduce product A's price? What is the change in sales after the price reduction? A) Yes; 1.02 initial sales B) Yes; 1.04 initial sales C) No;, 96 initial sales D) No; 98 initial sales

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Handbook Of The Economics Of Finance Corporate Finance Volume 1A 1st Edition by George M. Constantinides, M. Harris, Rene M. Stulz

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