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Answer to Question #16806 in Microeconomics for capitalboy
Question #16806
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae
from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased
from 1,500/day to 1,800/day. Compute the arc price elasticity of demand
over this price and consumption quantity range.
from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased
from 1,500/day to 1,800/day. Compute the arc price elasticity of demand
over this price and consumption quantity range.
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