What is the price elasticity of demand for app

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Reference no: EM132243617

APPMaster produced and test marketed a digital product that is particularly appealing to millennials. The variable cost per unit is $5.40. Test markets research predicts that global monthly sales will be 17,000 downloads (sales) at $10 and 9,160 at $14. The elasticity of demand was found to be constant( i.e. curvilinear rather than linear).

Given the test market results, what is the price elasticity of demand for this APP?

Reference no: EM132243617

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