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Andreyy89
2 years ago
15

Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5. She is pl

anning to lower prices by 20%. The percentage increase in the quantity demanded will be ________.
Business
1 answer:
andreev551 [17]2 years ago
4 0

Based on Celine's price elasticity of demand, the increase in quantity demanded will be 30%.

<h3>How will the quantity demanded change?</h3>

This can be found as:

= Change in price x Price elasticity of demand

The change in price will be negative because the price is being reduced.

Solving gives:

= -20% x -1.5

= 30%

Find out more on price elasticity of demand at brainly.com/question/5078326.

#SPJ1

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