If the price elasticity of demand for a product is known to be (-)
2.5 and the firm cuts the price of this product by 5%, what
change would we expect to see in the demand for this product?
Answers
Answered by
0
Answer:
If the price elasticity of demand for a product is known to be (-) 2.5 and the firm increases the price of this product by 5%, what change would we expect to see in the demand for this product? ... An increase in price will lead to an decrease in demand and the decrease will therefore be 12.5%.
Similar questions