Question

A firm finds that for the product it produces, its (own) price elasticity of demand is 4. Currently, the firm is selling 1000 units per month at Rs. 5 per unit. If it wishes to increase its sales by 10%, it must

A lower its price by 4%
B lower its price by 2%
C lower its price by 2.5%
D increase its price by 2%
E does not change its price
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