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Acme Widgets charges $10 for its only product, the Wonder Widget, in 2017. Revenue in 2017 is $1,000,000. In 2018, the company raises the Wonder

  1. Acme Widgets charges $10 for its only product, the Wonder Widget, in 2017. Revenue in 2017 is $1,000,000. In 2018, the company raises the Wonder Widget price to $11. Revenue for 2018, rises to $1,045,000.

    Based on the information above, it is fair to say:

    a.The price elasticity of the Widget Wonder is high (elastic)
  2. bThe price elasticity of the Widget Wonder is low (inelastic).

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