Price elasticity of demand for representative gasoline

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Suppose the own price elasticity of market demand for retail gasoline is -0.7, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $2,000,000 annually. What is the price elasticity of demand for a representative gasoline retailer’s product?

Instruction: Round your answer to 2 decimal places.

Reference no: EM13832606

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