6. Assume the price elasticity of demand for Master chips is -2.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will: * Increase by 39 percent. Increase by 24 percent. Decrease by 39 percent. Increase by 47 percent.
6. Assume the price elasticity of demand for Master chips is -2.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will: * Increase by 39 percent. Increase by 24 percent. Decrease by 39 percent. Increase by 47 percent.
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 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...
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Question
![6. Assume the price elasticity of demand for
Master chips is -2.0. If the company
decreases the price of each bag of chips
from $1.89 to $1.49, the number of bags sold
will: *
Increase by 39 percent.
Increase by 24 percent.
Decrease by 39 percent.
Increase by 47 percent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7249ab29-2baf-4519-8a5e-517665df9b1e%2Fa950e6f8-750d-410e-bd6d-4bc5ccef2006%2Fckk0xzm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Assume the price elasticity of demand for
Master chips is -2.0. If the company
decreases the price of each bag of chips
from $1.89 to $1.49, the number of bags sold
will: *
Increase by 39 percent.
Increase by 24 percent.
Decrease by 39 percent.
Increase by 47 percent.
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