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Answer to Question #219969 in Microeconomics for Thandeka

Question #219969
At a price elasticity of -0.39 what are the pricing options for the firm
1
Expert's answer
2021-07-26T11:13:02-0400

The price elasticity is -0.39


Negative price elasticity means that demand is not affected sensitively with a change in price.

Therefore the pricing options for the firm will be that the firm raises the price since the demand for the good will be less affected.


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