Question: https://criticalcommons.org/Members/joyofecon/clips/pursecase/view Kevin O'Leary suggests that Jenn and Kelley decrease the price of their product by50% and sell 10 times as many. That is, he predicts

https://criticalcommons.org/Members/joyofecon/clips/pursecase/view

Kevin O'Leary suggests that Jenn and Kelley decrease the price of their product by50% and sell 10 times as many. That is, he predicts if they drop the price of their productfrom $40 to $20 they will increase their quantity demanded from 6,000 to 60,000.What is the price elasticity of demand for Purse cases?

Based on the price elasticity of demand; are Purse cases elastic, inelastic, or unit elastic?Is Kevin O'Leary correct that revenues will increase if they reduce the price of Pursecaseby 50%?

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