Tea Fort, Inc. sells tea and tea mugs on Amazon.com. In December 2017, when Tea Fort cut
Question:
Tea Forté, Inc. sells tea and tea mugs on Amazon.com. In December 2017, when Tea Forté cut the price of its loose-leaf tea samplers by 35 percent, it sold 6.5 times as many samplers as before the price cut.
a. Based just on this information, what is the price elasticity of demand for Tea Forté’s tea samplers?
b. After Tea Forté cut the price of its tea samplers, Amazon included the product as one of its Cyber Monday deals, featuring it in e-mail advertisements. Does this additional information affect your answer to part (a)? Briefly explain.
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a Based just on the information given the price elasticity of demand for Tea Forts tea samplers is 1...View the full answer
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