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Q. Company Z had monthly sale of 10,000 pairs of Socks (at Kshs. 100 every pair) before a price cut by its major competitors. After the competitor's price reduction, the sales of company Z declined to 8,000 pairs a month. From past experience, company z has estimated the price elasticity of demand to be about -2.0 in this price-quantity range. If the company wishes to restore its sales to 10,000 pairs a month, illustrate what price should it charge every pair of socks?
What value of y survives as a solution if all firms are competing for high ability workers.
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Do you recommend this strategy based on the information he has obtained
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