Saturday
March 25, 2017

Post a New Question

Posted by on .

Coca-Cola in dispensers located on a golf course sells for $1.25 a can, and golfers buy 1,000 cans. Assume the course raises the price to $1.26 (assume a penny raise is possible) and sales fall to 992 cans.
a. Using the midpoint formula, what is the price elasticity of demand for Coke
at these prices?
b. Assume the demand for Coke is a linear line. Would the elasticity of demand
be elastic or inelastic at 75 cents a can?
c. At $2.00 a can?

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question