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I get an answer of (a) 1,6667 (b) elastic (based on absolute values) Question 3 Sipho runs a local kiosk specialising in slogan t-shirts. At

I get an answer of (a) 1,6667 (b) elastic (based on absolute values)

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Question 3 Sipho runs a local kiosk specialising in slogan t-shirts. At the end of summer, he hosts a clearance sale and decreases the price of t-shirts from R150 to R120 per unit. The sales log indicates the quantity of t-shirts demanded increased from 60 to 80 units. (a) Calculate the price elasticity of demand over the range of the linear demand curve for t- shirts. (b) What type of elasticity is applicable? Explain. [6]

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