Q. A company faces a -2.5 price elasticity of demand for its product. It is presently selling 10,000 units/month. If it wants to increase quantity sold by 6%, it must lower its price by
A) 15%
B) 3.50%
C) 2.40%
D) 2.50%
✔ Correct Answer: 2.40%
Exam Insight
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