Question
Widgets are normally sold for $10 per unit. At that price, a store sells 1000 widgets per week. If after a 20% increase in price,
Widgets are normally sold for $10 per unit. At that price, a store sells 1000 widgets per week. If after a 20% increase in price, only 840 widgets are sold. Calculate the following.
i. The price elasticity of demand for widgets
ii.
The Total Revenue before and after the price increase.
Before: ___________________
After: ___________________
iii. In this example, is the demand for widgets elastic?
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Economic Change In Asia Implications For Corporate Strategy And Social Responsibility
Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud
1st Edition
1317286650, 9781317286653
