Essay
Optimal Price. Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price on their low-rider jeans. Sales responded, rising 4% over the previous month's level.
A. Calculate the point price elasticity of demand for Lean Jeans.
B. If marginal cost per unit is $20, was the original $50 price optimal?
Correct Answer:
Verified
Correct Answer:
Verified
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