Question
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.50. As a result, the firm's daily sales of
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.50. As a result, the firm's daily sales of these sundaes have increased from 1,500 per day to 1,800 per day.
What is the arc price elasticity of demand over this price and consumption quantity range?
-2.22
-0.45
2.22
0.45
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Essentials of Econometrics
Authors: Damodar Gujarati, Dawn Porter
4th edition
73375845, 978-0071276078, 71276076, 978-0073375847
