Answered

IDNLearn.com makes it easy to get reliable answers from experts and enthusiasts alike. Our platform is designed to provide trustworthy and thorough answers to any questions you may have.

college textbooks wants to increase the quantity of textbooks that it sells by 8 percent. the price elasticity of demand for textbooks sold by college textbooks is 4.0. what is the percentage price cut that will achieve the firm's objective? the percentage price cut is percent.

Sagot :

Tutorconsortium410idn

Price elasticity of demand (PED) = percentage change in quantity / percentage change in price, the firm should reduce the price of textbooks by 1% to achieve a 5% increase in sales.

What Does Economics Mean by Elasticity?

The term "elasticity" refers to a measurement of how responsively a quantity that is required or supplied is to one of its determinants. When a factor, like as price or supply, changes, the demand for a good responds quickly. Conversely, items that are inelastic maintain their demand even when prices increase significantly (e.g., gasoline or food).

What does elasticity look like in economics?

The demand for the good is said to be elastic if the percent change in quantity sought exceeds the percent change in price. Elastic demand is the property of a good that occurs, for instance, when its price rises by 10% while its demand falls by 20%.

To know more about Elasticity visit:

https://brainly.com/question/28790459

#SPJ4

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.