The Stopdecay Company sells an electric toothbrush for $29. Its sales have averaged 7,900 units per month over the past year. Recently, its closest competitor, Decay fighter, reduced the price of its electric toothbrush from $35 to $15. As a result, Stopdecay's sales declined by 1,500 units per month.

 

What is the arc cross elasticity of demand between Stopdecay's toothbrush and Decayfighter's toothbrush?

 

 

 

If Stopdecay knows that the arc price elasticity of demand for its toothbrush is ? what price would Stop decay have to charge to sell the same number of units as it did before the Decay fighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30.

 

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