What should promotional price be when elasticity changes


Problem

An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3. Suppose the normal price is $26, which equates marginal revenue with marginal cost at the initial elasticity of -2.

What should the promotional price be when the elasticity changes to -3?

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Microeconomics: What should promotional price be when elasticity changes
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