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Isle price promotion changes the price elasticity

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Reference no: EM131205193

An end of isle price promotion changes the price elasticity of a good from -2 to -3. if the normal price is $10, what should the promotional price be?

Note: use (P-MC)/P = 1|e| to calculate MC, and then use the same equation to find out the new price.

Reference no: EM131205193

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