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Vlad [161]
3 years ago
13

Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of t

he following is true about the price elasticity of demand for the store’s goods?
Business
1 answer:
Anna11 [10]3 years ago
4 0

Answer:

The correct answer is Demand is inelastic, but not perfectly.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

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<h3>What is Advertisement?</h3>

Advertisement can be defined as the process of creating product awareness to attract customer so as make profit or to generate revenue.

Based on the given scenario the best place to advertise the food is on buses and with sign on parking lots since the restaurant chain has identified day commuters as it target customers doing this  will help to persuade this commuter to buy the fast food product.

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Critically discuss the economic importance of the secondary sector to the south African economy.​
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