Question: The transport manager observed from historical data that the average demand was 3,000 kg per month when the transport rate was $6.80/kg. When the company

The transport manager observed from historical data that the average demand was 3,000 kg per month when the transport rate was $6.80/kg. When the company charged a new transport price of $8.50/kg, the average demand decreased to 2,700 kg per month. Assume other than the transport prices that all external and internal conditions are the same. Comment on the price elasticity of demand for this situation.

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