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Essay

Price elasticity of demand

Essay specific features

 

Issue:

Business

 

Written by:

Tammy S

 

Date added:

January 23, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 617

 

Was viewed:

1230 times

 

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Essay content:

The data suggest that tastes didn’t change significantly, since the sales of all the newspapers held constant at around 2.5 million copies daily. The other table shows that the cut in the price of The Times shifted the Independent’s demand curve to the left. As you can see from table 1 a 40% price reduction of the price of The Times led to a 17...
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As you can see from table 1 a 40% price reduction of the price of The Times led to a 17.5% increase in its sales. This indicates a price elasticity of demand for The Times of-0.44 (percentage change in quantity demanded 17.5/-40 percentage change in price). As a result, The Times’ daily revenue fell from ?169,576 to ?134,689...
displayed 300 characters

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