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After Running a Promotional Campaign,the Owners of a Local Shoe

Question 1

Multiple Choice

After running a promotional campaign,the owners of a local shoe store decided to decrease the prices for the shoes sold in their store.One can imply that


A) The promotional expenditures made the demand for their shoes more elastic
B) The promotional expenditures made the demand for their shoes more inelastic
C) The promotional expenditures has no effect on the shoe demand elasticity
D) The owners got it wrong.To cover the promotional expenses,they should have raised the prices.

Correct Answer:

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