Revenues on the sales of warburtons crumpets


Problem: Warburtons one of the largest producers of bread in the UK decided to lower bread prices by 7%. Suppose that as a result of the price decrease, the volume of bread sold by Warburtons increases by 6%. What can you infer about the own price elasticity of dmand for Warburtons bread? Can you predict how the revenues on the sales of Warburtons Crumpets would be affected? Explain.

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Macroeconomics: Revenues on the sales of warburtons crumpets
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