Question

​The owner of a bakery decides to drop the price of lemon cakes by 5%, how much does quantity sold have to rise to stop the revenue from decreasing

Answer 1

5%

Step-by-step explanation:

In the case when the bakery owner decided to decline the lemon cake price by 5% so here the quantity that should be sold should be increase in order to stop the revenue from reducing it by 5% as this is happen because of the price and the elasticity

So as per the given situation, the quantity sold should also be increased by 5%