The own-price elasticity of the demand for Luna's product is -0.8. Explain how a 10% price increase would affect the company's revenue.
A) Reduce by 8%.
B) Increase by 8%.
C) Increase by 2%.
D) Insufficient information to calculate.

Name: The own-price elasticity of the demand for Luna's product is -0.8. Explain how a 10% price increase would affect the company's revenue. A) Reduce by 8%. B) Increase by 8%. C) Increase by 2%. D) Insufficient information to calculate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Answer is C

The Own-Price Elasticity of the Demand for Luna's Product Is