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The teenager Company makes and sells skateboards

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Question

The teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. If it decreases the price to $63, what should be the quantity sold? Will revenue increase? Why?

 

Paper#27911 | Written in 18-Jul-2015

Price : $22
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