Assume Qd = 2700 when P = 11. And Qd = 2100 when P = 13. Calculate the price elasticity of demand? (using 1st method I got 1.24) (using 2nd method i got 1.221) a. what would happen to revenues in the above example if the firm lowered prices slightly. explain?b. Given the answer to question above, should firms lower prices?
Assume Qd = 2700 when P = 11. And Qd = 2100 when P = 13. Calculate the priceelasticity of demand? (using 1st method I got 1.24) (using 2nd method i got 1.221)a. what would happen to revenues in…
