Question
(part 1) LawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand at -2.3 at this price. LawnTech
(part 1) LawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand at -2.3 at this price. LawnTech is thinking about raising its price by +3.3%. By what percent will Quantity sold change, given this change in price? Report your answer as a percent. Report 25.5%, for example, as "25.5". Remember to report the sign of the change. Rounding: tenth of a percent.
(part 2) LawnTech sells its sonic gopher repeller at a price of $380, and estimates price elasticity of demand at -1.5 at this price. At that price, LawnTech sells 35,000 units per year. LawnTech is thinking about cutting its price by -3.6%. How many MORE units can LawnTech expect to sell at the new price? Rounding: tenth of a unit.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started