You run a small business and would like to predict what will happen to the quantity demanded for your product if you raise your price. While you do not know the exact demand curve for your? product, you do know that in the first year you charged $50 and sold 1,499 units and that in the second year you charged $40 and sold 2,111 units.
?If you plan to lower your price by 10? percent, what would be a reasonable estimate of what will happen to quantity demanded in percentage? terms? Incorporate the point elasticity of demand using the initial price and quantity in your answer.
The quantity demanded will increase by ____ units.