Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 13, 2024

You sell small pizza's at music festivals during the summer. You drop the price of pizza from $8 to $6 and the quantity demanded rises

You sell small pizza's at music festivals during the summer. You drop the price of pizza from $8 to $6 and the quantity demanded rises from 800 to 1,200 per day.

Calculate the price elasticity of demand for pizza using the midpoint method (2 marks).

Does your revenue increase or decrease?Calculate and explain based on whether the calculated price elasticity of demand is elastic or inelastic (3 marks).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Business Ethics

Authors: Peter A. Stanwick, Sarah D. Stanwick

3rd Edition

1506303234, 9781506303239

Students also viewed these Economics questions

Question

★★★★★

Review Exhibit 9.5 and the accompanying discussion on search, experience, and credence attributes of offerings. a. Why are the types of offerings on the far right side of the continuum professional...

Answered: 1 week ago

Question

★★★★★

What conditions are most likely to precipitate heteroscedasticity?

Answered: 1 week ago

Question

★★★★★

=+Experience for different Education levels, how many indicator variables will she need for Education?

Answered: 1 week ago

Question

★★★★★

If an asset that is not fully depreciated is sold or disposed, but the fixed asset records are not adjusted, what effect will this have on the financial statements?

Answered: 1 week ago

Question

★★★★★

1. Los costos bajo ambos formatos del estado de resultados (formatos de costeo variable y de absorcin) se clasifican como costos del producto o del perodo. El grupo comienzaVerdadero o Falso 2. La...

Answered: 1 week ago

Question

★★★★★

Today is Derek s 2 5 th birthday. Derek has been advised that he needs to have $ 2 , 1 5 2 , 4 0 1 . 0 0 in his retirement account the day he turns 6 5 . He estimates his retirement account will pay...

Answered: 1 week ago

Question

★★★★★

Eight-year-old Rubio does not play with his classmates, and when he does have to interact with them he tends to get frustrated and doesn't understand how to interact with them. Even at home, Rubio...

Answered: 1 week ago

Question

★★★★★

People disagree regarding the extent to which we should be anxious and fearful of how new technologies will affect our society.What are the potential ramifications of being constantly connected to...

Answered: 1 week ago

Question

★★★★★

When planning instruction, a teacher must integrate curriculum and instructional strategies that students can relate to on a personal level. Consider the community in which you plan to teach....

Answered: 1 week ago

Question

★★★★★

Maggie just had a car accident. There was no one seriously hurt, but both vehicles may be beyond repair. Maggie is obviously shaken up as she calls you for help. What symptoms might Maggie be...

Answered: 1 week ago

Question

★★★★★

A guest received a full day package at the Spa from her husband as a gift. She makes an appointment and calls the day prior to re - confirm. When she arrives no reservations are found. The Spa is...

Answered: 1 week ago

Question

★★★★★

During August. Boxer Company sells $359.000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty ability account...

Answered: 1 week ago

Previous Question Next Question