1.Chapter 4 Study Problem 4Calculating Price Elasticity of Demand

Ifa20%increaseinpricecausesa10%dropinthequantitydemanded,istheprice elasticityofdemandforthisgoodelastic,unitary,orinelastic?

2.

Good Cross-Price Elasticities of Demand Air-conditioning units and kilowatts of electricity -0.34 Coke and Pepsi +0.63 Butter and Margarine +1.5415. In 2013. the NFC football team the Atlanta Falcons moved to a new stadium. As part of this move, they dropped their stadium's food and beverage prices 50% versus prices at the old stadium. In order for this pricing strategy to work. the Falcons must believe that consumer demand is . Explain your