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11 Aug 2019
Ghose and Han (2014) found that the elasticity of demand for Google Play apps is -3.7. (See the Application, "The Demand Elasticities for Google Play and Apple Apps.") This elasticity applies to the small college town where approximately 1,000 apps per month are sold. If the price rises by 5%, what would be the effect on quantity demanded? Would revenue rise or fall? What is the percentage change in revenue (=price X quantity)?
Ghose and Han (2014) found that the elasticity of demand for Google Play apps is -3.7. (See the Application, "The Demand Elasticities for Google Play and Apple Apps.") This elasticity applies to the small college town where approximately 1,000 apps per month are sold. If the price rises by 5%, what would be the effect on quantity demanded? Would revenue rise or fall? What is the percentage change in revenue (=price X quantity)?
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Jamar FerryLv2
13 Aug 2019