Question
2. Price of a bottle of Aquafina increases from Dh 1 to Dh 2 and the quantity sold decreases from 6 million bottles a month
2. Price of a bottle of Aquafina increases from Dh 1 to Dh 2 and the quantity sold decreases from 6 million bottles a month to 2 million bottles a month.
a. Calculate the price elasticity of the demand by using the midpoint formula.
b. Is demand elastic or inelastic?
c. What pricing strategy will you recommend?
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
