In this problem,demonstrate your knowledge of percentage rates of change of an entire demand function (Hint: %$\Delta$Q = E_P•%$\Delta$P + E_Y•%$\Delta$Y).You have found that the price elasticity of motor control devices at Allen-Bradley Corporation is -2,and that the income elasticity is a +1.5.You have been asked to predict sales of these devices for one year into the future.Economists from the Conference Board predict that income will be rising 3% over the next year,and AB's management is planning to raise prices 2%.You expect that the number of AB motor control devices sold in one year will: A)fall .5%. B)not change. C)rise 1%r. D)rise 2%. E)rise .5%.

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The Answer of In this problem,demonstrate your knowledge of percentage rates of change of an entire demand function (Hint: %$\Delta$Q = E_P•%$\Delta$P + E_Y•%$\Delta$Y).You have found that the price elasticity of motor control devices at Allen-Bradley Corporation is -2,and that the income elasticity is a +1.5.You have been asked to predict sales of these devices for one year into the future.Economists from the Conference Board predict that income will be rising 3% over the next year,and AB's management is planning to raise prices 2%.You expect that the number of AB motor control devices sold in one year will: A)fall .5%. B)not change. C)rise 1%r. D)rise 2%. E)rise .5%.

In This Problem,demonstrate Your Knowledge of Percentage Rates of Change Δ\DeltaΔ

In This Problem,demonstrate Your Knowledge of Percentage Rates of Change $\Delta$