Managerial Economics (MindTap Course List)
4th Edition
ISBN: 9781305259331
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 12, Problem 1MC
To determine
Less elastic demand.
Expert Solution & Answer
Explanation of Solution
When the promotion makes the demand for a particular good less elastic, then the increase in the price is the correct action (If the demand is less elastic, then the increase in the price would not change the demand significantly). Thus, option ‘d’ is correct.
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Chapter 12 Solutions
Managerial Economics (MindTap Course List)
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