what is the implication of the statment that the price elasticity of bananas is 2?
what is the implication of the statment that the price elasticity of bananas is 2?
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It shows that proportionate change in quantity demanded due to price change is greater than proportionate change in price. The implication is price decrease will increase revenue and price increase will decrease revenue. Thus it is profitable for firm to reduce price
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what is the implication of the statment that the price
elasticity of bananas is 2?
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