If the price elasiticiy of soap is 2.5, then if the price goes up from $2.00 to $2.50, what will th

Asked Jan 03, 2011
Assuming the rest of the question was what will the effect on demand be, It wouldn't be a pretty sight. A 20 percent increase in price will considerably reduce the demand for an elastic product. The effect would probably create a nationwide epidemic of body odor. :-)
Answered Jan 03, 2011

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