Lesson 3-3: Pay and Taxes - HSFPP
Between B and C, the own price elasticity if inelastic (-0.46). Between A and B, recommend a price decrease. Between B and C, recommend price increase to raise total revenue. The elasticity is –1.3. The new price of $4.20 represents a 20 percent increase from the initial price of $3.50. Therefore, the percent change in quantity must be –26. ................
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