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?
Managerial Economics - bobpursley, Sunday, August 15, 2010 at 12:51pm
where dQ= percent quantity demand
dP= percent price change
dQ=dP*-2.5= -7/70 * -2.5= 25
check my thinking