A firm finds that for the product that it produces, its (own) price elasticity of demand is 4. Currently, the firm is selling 2000 units per month at ₹ 5 per unit. If it wishes to increase its sales by 10%, it must
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- lower its price by 4%
- lower its price by 2%
- lower its price by 2.5%
- increase its price by 2%
The Correct Option is C
Solution and Explanation
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