Home » Past Questions » Economics » The elasticity of demand for a firm's product is 2.If the firm reduces its price ...

The elasticity of demand for a firm's product is 2.If the firm reduces its price ...


Question

The elasticity of demand for a firm's product is 2.

If the firm reduces its price by 20 percent, its sales revenue will increase by?

Options

A)
10 per cent
B)
20 per cent
C)
30 per cent
D)
40 per cent

The correct answer is D.


More Past Questions:


Discussion