Question
Q5. (i). Fill in the missing amounts in the following table: % Change in Price % Change in Quantity Elasticity Demand for Walls Ice Cream
Q5. (i). Fill in the missing amounts in the following table:
% Change in Price
% Change in Quantity
Elasticity
Demand for Walls Ice Cream
+10%
-12%
A
Demand for soft drinks in Stadium
-20%
B
-0.5
Demand for Cineplex tickets
C
-15%
-1.0
Supply of Chicken
+10%
D
+1.2
Supply of Beef
-15%
-10%
E
(ii)Use the table in the preceding problem to defend your answers to the following
questions:
a.Would you recommend that Walls move forward with a plan to raise prices if the company's only goal is to increase revenues?
b.Would you recommend that soft drink stands cut prices to increase revenues at Stadium next year?
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