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Mr. Sea Food is considering a price reduction on the lobster soup, which currently sells for the price of $5.00. Mr. Smith, the proprietor, knows the price elasticity for this soup is roughly equal to 2.3 over the range being considered for the price change. The soup has been selling at the stable pace of 500 per week. To increase market share, Mr Smith would like to increase sales to 750 per week. What price should she set?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9677606

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