Skateoards sell for $70. During the past year they sold 4,000 skateboards. The company beleives that the price elasticity for product is -2.5. If it decreases the price to $63, what would be the quantity sold?
dQ/dP=-2.5
where dQ= percent quantity demand
dP= percent price change
dQ=dP*-2.5= -7/70 * -2.5= 25
Q= 4000(1.25)=5000
check my thinking