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Homework answers / question archive / The price elasticity of demand for one video game by EZ-Game is 2
The price elasticity of demand for one video game by EZ-Game is 2.5 at the current price of $30 and with 100,000 online subscribers. Now suppose the company tries to lower the price to $27 (three dollars lower). Tip: the elasticity should be a negative number.
a. How many new subscribers would purchase the game?
b. How much their revenue of the game would change?
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