Percentage change in the number of visits

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Suppose that the price elasticity of demand a clinic is -2.5.

a. Calculate the percentage change in the number of visits if the clinic increases its price per unit by 15%. Show ALL your work.

b. Based on the information given, would you recommend a price increase if the objective is to increase this clinic's total revenue? CAREFULLY EXPLAIN your answer.

Reference no: EM133067287

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