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Tanya [424]
2 years ago
11

Due to inflation and shortages created by supply chain shortages, the price of Paco Rabanne's Eau de Toilette Spray increased

Business
1 answer:
Darya [45]2 years ago
5 0

The sales of Paco Rabanne's Eau de Toilette Spray would fall by 11.25%.

<h3>What is the price elasticity of demand?</h3>

The price elasticity of demand measures the impact of price changes on the quantity demanded of good. When t the price elasticity of demand is less than 1, demand is inelastic.

Percentage change in the quantity demanded = price elasticity x percentage change in price

12.5% x 0.9 = 11.25%

To learn more about supply elasticity, please check: brainly.com/question/26634801

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3 years ago
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