Investigating the demand for textile in a country X, a researcher observed that the demand for textiles tend to rise by 1.5 per cent with one per cent decrease in the prices of textiles; with the rise in one per cent of per capita GDP, the demand for textiles rise by 0.45 per cent and when food prices increased by one per cent, the demand for textiles contracts by 0.93 per cent. (a) Identify the type of demand elasticities in this case and define them. (b) Which type of elasticity the textile mills should consider significant for business development? (c) How much rise in sales is expected during a festival season by offering 20 per cent discount by textile mills showrooms?
Investigating the
(a) Identify the type of demand elasticities in this case and define them.
(b) Which type of elasticity the textile mills should consider significant for business development?
(c) How much rise in sales is expected during a festival season by offering 20 per cent discount by textile mills showrooms?
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