Question
Sandy Wiches sells fresh sandwiches at a beach location. Management has determined that on a typical day, demand can be described by the following demand
Sandy Wiches sells fresh sandwiches at a beach location. Management has determined that on a typical day, demand can be described by the following demand equation: L.O. - Elasticity of Demand
Q = 1,200 - 200P.
a. If P = $3.00, determine the number of sandwiches sold and the elasticity of demand at this price
b. If price is increased to $4.00, determine the elasticity of demand at this new price. Is demand more or less elastic after the price increase?
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
