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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 | |