If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could A. talk to its customers. B. survey competitors and ask them what they think demand elasticity for the product is. C. not do anything as there is no way to find an elasticity value. D. change price a little bit and observe what happens to total revenue.
If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could A. talk to its customers. B. survey competitors and ask them what they think demand elasticity for the product is. C. not do anything as there is no way to find an elasticity value. D. change price a little bit and observe what happens to total revenue.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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