Answer:
Price should be lowered by 50%
Explanation:
Demand is the buyers ability & willingness to buy at a price, time.
Price Elasticity of Demand is the responsiveness of demand to price change.
= Percentage Change in Quantity Demanded / Percentage Change in Price
Ped = %∆Q / %∆P
0.1 = 5 / %∆P
%∆P = 5 / 0.1
Percentage change in price = 50%
