2. If the current Price is $20 and a decrease in price by 15%causes an increase in sales by 40%, find the current level of sales if the price elasticity of demand is -1.2.
2. If the current Price is $20 and a decrease in price by 15%causes an increase in sales by 40%, find the current level of sales if the price elasticity of demand is -1.2.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 1QR
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![2. If the current Price is $20 and a decrease
in price by 15%causes an increase in sales
by 40%, find the current level of sales if the
price elasticity of demand is -1.2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ae2ff4c-42e2-40c5-8fe8-be7d90b364fb%2Fc3540c8f-3c2c-4cca-b9b2-3fd61fb122ae%2F3bfkohh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. If the current Price is $20 and a decrease
in price by 15%causes an increase in sales
by 40%, find the current level of sales if the
price elasticity of demand is -1.2.
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