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Kamila [148]
1 year ago
14

The fully allocated cost of a product is $10. If the price elasticity of demand for the product is –3, then the firm's optimal m

arkup on full cost is?
Business
1 answer:
MissTica1 year ago
4 0

the fully allocated cost of a product is $10. If the price elasticity of demand for the product is -2, then the firms optimal markup is 10% 100% 200% or 300.

Demand is said to be relatively elastic if a relatively small change in price is accompanied by a disproportionately large change in quantity demanded. Mathematically, demand is said to be relatively elastic if its elasticity coefficient (that is, the result of the PED formula) is greater than 1.

Elastic demand or supply is when the elasticity is greater than 1, indicating high responsiveness to price changes. Inelastic demand or supply is one with elasticity less than 1, indicating a poor response to price changes.

A product with 0 elasticity is considered completely inelastic because changes in price have no effect on demand.

Learn more about price elasticity at

brainly.com/question/24384825

#SPJ4

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Answer: The relative Price of Hamburger has decreased, so Phillip would be expected to purchase more.

Explanation:

Given that,

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The relative Price of Hamburger has decreased, so Phillip would be expected to purchase more.

5 0
3 years ago
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