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In: Economics

Each scenario below gives some information about price elasticity of demand for a firm. Use this...

Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the following questions.?

Round answers to two places after the decimal where applicable.

Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 2.10 .

Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67 %.

Abe must have prices. Abe's prices

must have changed by %

Therefore, Abe's total revenue

At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 75 %.

If Webs-R-Us has a price elasticity of demand at 0.70 , we can expected the number of websites designed to The number of websites will change by % Therefore, Webs-R-Us's total revenue will

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Rahul Sunny answered 1 year ago
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