Question

A firm is currently selling 10,000 units of its
product per month. The firm plans to reduce
the retail price from Rs 1 to Rs 0.90.From the
previous experience, the firm knows that the
price elasticity of demand is (-)1.5. Assuming
no other changes, the firm can now expect the
sales of:
A)
8500 units
B)
10,500 units
C) 11,000 units
DO 11,500 units​

Answer 1

Answer:

Explanation:

ed= △p/△q x p/q

(−)1.5=(−) △q/10 x 1/10000

New Quantity demanded =10000+1500=11500.

hope this help you

stay home stay safe and be healthy

Answer 2

Answer:

11500 answer,,,,,,,,,,,, D option