Consultant to estimate the elasticity of demand for widgets

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Reference no: EM131001173

You hire a consultant to estimate the elasticity of demand for widgets, the product that your company produces and sells. When you receive the report it indicates that the elasticity of demand for widgets is -0.6.

(1) Briefly explain what that means.

(2) What are its implications for your firm’s pricing decision?

Reference no: EM131001173

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