A newspaper recently lowered its price from 30 to 25 as it


A newspaper recently lowered its price from $30 to $25. As it did, the number of newspaper sold increased from 20,000 to 25,000. a. What was the newspaper’s price elasticity of demand? Was it price elastic or inelastic? Explain and show your work. b. Given that elasticity, did it make sense for the newspaper to lower its price? Why or why not?

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Business Economics: A newspaper recently lowered its price from 30 to 25 as it
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