Friday
March 27, 2015

Homework Help: Econ

Posted by Linda on Thursday, November 8, 2012 at 11:28pm.

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

ECONOMICS - 1)The tire shop sells 50 tires a day at $75. After they raise the ...
ECONOMICS - 1)The tire shop sells 50 tires a day at $75. After they raise the ...
Statistics and Probability - A research manager at Coca-Cola claims that the ...
Business Finance - Given the current financial information for both Microsoft ...
marketing - Answer the following questions: 1. Think of the value exchanged ...
Pre-Calc - The Sweet Drip Beverage C. sells cans of soda pop in machines. It ...
Math - Stan's Cans, Inc. expects to earn $150,000 next year after taxes on ...
College Math - A cooler contains 7 cans of cola: 6 regular colas and 4 diet ...
Econ - A firm faces the following sales function: Q=5,000-10P+40A+PA-0.8A^2-0.5P...
Help - Suppose the U.S is an importer of product X and that there are no trade ...

Members