Economic slowdown in the country and region

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Given the current economic slowdown in the country and region at large, a well know company has been experiencing low sales of one of its products and consequently the marketing manager has advised top management that it should consider reducing the price of its product by 8%. Market research conducted by the marketing team shows that the price elasticity of demand for this product is -0.5. Given your economic knowledge, is the advice given by the marketing manager appropriate? Explain your intuition.

Reference no: EM132587186

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