Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00

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Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:

1. Compute the price elasticity of demand for paint and show your calculations.

2. Decide whether the demand for paint is elastic, unitary elastic, or inelastic.

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An Introduction to Management Science Quantitative Approach to Decision Making

ISBN: 978-1337406529

15th edition

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

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Question Posted: May 12, 2012 06:09 AM

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Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00

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Computation of the price elasticity of demand ...View the full answer

An Introduction to Management Science Quantitative Approach to Decision Making

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