The price elasticity of demand for industry demand is equal to -1.5 at the curre

Question

The price elasticity of demand for industry demand is equal to -1.5 at the current price. If total industry output is expected to increase by 30 percent as a result of the supply increase, assuming price elasticity of demand remains the same, managers in this industry should expect the market price of the good to _________ by ___________ percent. Answer A. decrease, 20 B. increase, 20 C.
decrease, 45 D.
increase, 45 The price elasticity of demand for industry demand is equal to -1.5 at the current price. If total industry output is expected to increase by 30 percent as a result of the supply increase, assuming price elasticity of demand remains the same, managers in this industry should expect the market price of the good to _________ by ___________ percent. The price elasticity of demand for industry demand is equal to -1.5 at the current price. If total industry output is expected to increase by 30 percent as a result of the supply increase, assuming price elasticity of demand remains the same, managers in this industry should expect the market price of the good to _________ by ___________ percent. decrease, 20 increase, 20 decrease, 45 increase, 45 A. decrease, 20 B. increase, 20 C.
decrease, 45 D.
increase, 45

Explanation / Answer

increase, 20

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