ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The management believes that every 9% decrease in the selling price of one of the company's products would lead to a 15% increase in the product's total unit sales. The product's variable cost is ₱11.80 per unit. The product's price elasticity of demand is closest to:
a. -1.12
b. -1.34
c. -1.61
d. -1.48
The product's profit-maximizing price is closest to:
a. ₱31.19
b. ₱46.07
c. ₱106.31
d. ₱36.28
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