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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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
