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Point price elasticity of demand for dishwashing liquid

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Reference no: EM132271811

Lo Food Stores, Inc. reduced the average price on the 22 ounce size of Dishwashing Liquid by 1%. In response, sales jumped by 8%.

A. Calculate the point price elasticity of demand for Dishwashing Liquid.

B. Calculate the optimal price for Dishwashing Liquid if marginal cost is 70¢ per unit.

Reference no: EM132271811

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