Solution-What is the elasticity of demand

What is the elasticity of demand

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Question -

a) Explain why we normally report the elasticity of demand as a positive number, can it not be a negative number also?

b) If you have a price reduction of 10%, and this leads to a quantity increase from 100.000 units to 105.000 units, what is the elasticity of demand?

c) Explain in detail what you would advise the company in b) to do so and why.

Reference no: EM132976969

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What is the elasticity of demand

Reference no: EM132976969

Reference no: EM132976969

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