Essay
Suppose that at P = $4, Qd = 10. At P = $5, Qd = 9. Calculate the elasticity of demand for this product (using the base method) if the price changes from $4 to $5. Is demand elastic or inelastic? How should the firm selling this product change its price to increase total revenue?
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0.47; demand is inelastic; the...View Answer
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