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corie corie
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6 years ago
Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand.  Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5.  If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users?
A) 25% off
B) 50% off
C) 75% off
D) The optimal strategy is to charge the same price to both groups
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Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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6 years ago
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corie Author
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6 years ago
Helped a lot
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this is exactly what I needed
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