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1. Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. what

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1. Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. what is the price elasticity of Bobo's demand curve?

2. A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. Is the elasticity of demand for cereal elastic or inelastic? What would be the resulting impact on revenue?

image text in transcribed
1. Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the price elasticity of Bobo's demand curve? 2. A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. Is the elasticity of demand for cereal elastic or inelastic? What would be the resulting impact on revenue

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