The price elasticity of demand is 0.5. If we cut prices by 6 percent, revenue sh

Question

The price elasticity of demand is 0.5. If we cut prices by 6 percent,

revenue should fall by 3.2 percent.

sales should rise by 2 percent.

sales should fall by 2 percent.

revenue should rise by 3.2 percent

The price elasticity of demand for well-child visits is 0.2. Cutting the co-payment from $20 to $10 should

increase well-child visits by 10 percent.

increase well-child visits by 40 percent.

reduce well-child visits by 40 percent.

reduce well-child visits by 10 percent.

revenue should fall by 3.2 percent.

sales should rise by 2 percent.

sales should fall by 2 percent.

revenue should rise by 3.2 percent

Explanation / Answer

revenue should rise by 3.2 percent reduce well-child visits by 10 percent.

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