1.

A tyre tube manufacturer faces a -1.6 price elasticity of demand for its tubes. It is presently selling 24000 units/month. If it wants to increase quantity sold by 4%, it must lower its price by __________.

A. 2.5 percent
B. 5.6 percent
C. 2.4 percent
D. 6.4 percent
Answer» B. 5.6 percent


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