A firm selling ready meals discovers that the price elasticity of its product is -2.5 and the income elasticity of its product is 1.5. Given this information, which of the following statements are true? A 10% rise in consumer income will lead to a 1.5% rise in sales of its ready meals. b. A 5% rise in the price of its product will lead to a 12.5% fall in sales of its ready meals. c. A 4% fall in the price of its product will lead to a 10% fall in sales of its ready meals. d. A 6% rise in consumer income will lead to a 9.0% rise in sales of its ready meals.
A firm selling ready meals discovers that the price elasticity of its product is -2.5 and the income elasticity of its product is 1.5. Given this information, which of the following statements are true? A 10% rise in consumer income will lead to a 1.5% rise in sales of its ready meals. b. A 5% rise in the price of its product will lead to a 12.5% fall in sales of its ready meals. c. A 4% fall in the price of its product will lead to a 10% fall in sales of its ready meals. d. A 6% rise in consumer income will lead to a 9.0% rise in sales of its ready meals.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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i need the answer ASAP
A firm selling ready meals discovers that the
A 10% rise in consumer income will lead to a 1.5% rise in sales of its ready meals.
b.
A 5% rise in the price of its product will lead to a 12.5% fall in sales of its ready meals.
c.
A 4% fall in the price of its product will lead to a 10% fall in sales of its ready meals.
d.
A 6% rise in consumer income will lead to a 9.0% rise in sales of its ready meals.
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