Question
Dixie Chicken sells an average of 1841 Freddie Burger platters per month over the past 6 months at an average of $9.08 each. The price
Dixie Chicken sells an average of 1841 Freddie Burger platters per month over the past 6 months at an average of $9.08 each. The price elasticity of Demand for this platter is estimated to be -0.71. If Dixie Chicken increases the price of the platter by 10% how many Freddie Burger platters will Dixie Chicken sell?
** HINT - use the basic formula: Elasticity = (Unknown Q / Change in Price) x (Average Price / Average Quantity sold) ** enter your answer for HOW many Burger platters will be sold FOLLOWED by whether the elasticity value is inelastic or elastic.
e.g. 1274 elastic or e.g. 2814 inelastic ONLY ENTER NUMBERS - NO $ AND NO COMMAS - THANK YOU DO NOT ROUND YOUR ANSWERS WHILE DOING YOUR CALCULATIONS - USE 2 DECIMAL PLACEMENTS PLEASE
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