An ice cream store read in the local paper that the, Ask an Expert

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Elasticity is assessed.

An ice cream store read in the local paper that the elasticity of market demand for ice cream is -.38. He concluded that if he raised the price of ice cream, his total revenue would increase. So, he increased his prices by 18%, yet revenues fell substantially. Why did this outcome occur?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M925568

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