As the manager of a ski resort, you want to increase the number of lift tickets sold by 8 percent. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should decrease the price of a lift ticket by:
A. 16 percent.
B. 8 percent.
C. 4 percent.
D. 2 percent.
Answer: C
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What will be an ideal response?
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