Asda, a supermarket chain, noticed a regular, sharp decrease in sales in the third week of the month as people ran out of cash before their next wage payment. The supermarket offered their biggest price reductions at that time.
Why might this policy increase total revenue?
1 )
because consumers’ demand curve shifts to the left in the third week of the month
2 )
because consumers’ demand curve shifts to the right in the third week of the month
3 )
because the price elasticity of demand for Asda’s products decreases in the third week of the month
because the price elasticity of demand for Asda’s products increases in the third week of the month
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