Q. A manufacturer faces a -1.2 price elasticity of demand for its product. It is presently selling 7,500 units/day. If it wants to increase quantity sold by 9%, it must lower its price by
A) 7.8 percent
B) 7.5 percent
C) 10 percent
D) 10.2 percent
✔ Correct Answer: 7.5 percent
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