{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Wk 1 assignment - that price to $60 what happens to total...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Use the diagram to answer the questions that follow. Calculate demand elasticity using the midpoint formula between points A and B, between points C and D, and between points E and F. b. If the store currently charges a price of $50, then increases
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: that price to $60, what happens to total revenue from shoe sales (calculate PxQ before and after the price change)? Repeat the exercise for initial prices being decreased to $40 and $20, respectively. c. Explain why the answers to a. can be used to predict the answers to b....
View Full Document

{[ snackBarMessage ]}