Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Textbook Question
Chapter 12, Problem 9MC
After running a promotional campaign, the owners of a local hardware store decided to decrease the prices for the advertised products sold in their store. One can infer that
- a. the promotional expenditures made the
demand for the advertised products more elastic. - b. the promotional expenditures made the demand for the advertised products less elastic.
- c. the promotional expenditures had no effect on the demand elasticity.
- d. the owners got it wrong. To cover the promotional expenses, they should have raised the prices.
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