Question 10Celine runs a sporting goods store and knows that the price elasticity of demand for her sportsclothing line is -1.5. She is planning to lower prices by 10 percent. The percentage change inquantity demanded will be0.06 percent.O 6.66 percent.O 15 percent.O 0.15 percent.8.50 percent.

When there is a variation in the level of demand due to a change in the level of price of a product…

Answered: Celine runs a sporting goods store and…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2.4P

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Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
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Celine runs a sporting goods store and knows that the price elasticity of demand for her sport clothing line is -1.5. She is planning to lower prices by 10 percent. The percentage change in quantity demanded will be O 0.06 percent. O 6.66 percent. O 15 percent. O 0.15 percent. 8.50 percent.