Posted by: Pdfprep
Post Date: January 29, 2021
CORRECT TEXT
A magazine currently has a circulation of 500,000 copies per year at a price of $5 per copy Following a market survey it has been suggested that the price of each copy should be reduced to $4 50. It is expected this will lead to an increase in circulation of 25.000 copies
per year.
What is the price elasticity of demand of the magazine?
Answer: – 0.45
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