Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A firm is setting a price of $12 for its product and is operating at 80% of its production capacity of 10 000 units per month. If the product has unitary price elastic demand, what price should the firm set in order to use its full capacity?

  • A$9.00
  • B$9.60
  • C$10.00
  • D$10.60

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