Evaluate the wisdom of the firms pricing policy

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The Hanover Manufacturing Company believes that the demand curve for its product is P=5 - Q Where P is the price of its product in dollars and Q is the number of millions of units of its product sold per day. It is currently charging a price of $1 per unit for its product.

a. Evaluate the wisdom of the firm’s pricing policy.

b. A marketing specialist says that the price elasticity of demand for the firm’s product is -1.0. Is this correct?

Reference no: EM131242391

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