Question
Assume that the demand curve is a straight line. If the price per unit of a good rises from $4.50 to 6, it is expected
Assume that the demand curve is a straight line. If the price per unit of a good rises from $4.50 to 6, it is expected that monthly demand will fall from 300,000 units to 250,000 units. What is the point price elasticity of demand when the price is $4.50? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?
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Food And Beverage Cost Control
Authors: Lea R. Dopson, David K. Hayes, Jack E. Miller
4th Edition
0471694177, 978-0471694175
