Econ
posted by Linda .
CocaCola 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?
Respond to this Question
Similar Questions

College Math
A cooler contains 7 cans of cola: 6 regular colas and 4 diet colas. If 3 cans of cola are selected at random, what is the probability that 2 cans of regular cola and 1 can of diet cola are selected? 
PreCalc
The Sweet Drip Beverage C. sells cans of soda pop in machines. It finds that sales average 26000 cans per month when the cans sell for 50cents each. For each nickel increase in the price, the sales per month drop by 1000 cans. Determine … 
math 156
Liz needs to buy soft drinks for 30 people. At the store she finds that she can buy 6 cans for $2.10. She assumes that each person would drink 2 cans each. WHen she checks her wallet she finds that she only has $20. Does she have enough … 
Statistics and Probability
A research manager at CocaCola claims that the true proportion, p, of cola drinkers that prefer CocaCola over Pepsi is greater than 0.50. In a consumer taste test, 100 randomly selected people were given blind samples of CocaCola … 
Math
Stan's Cans, Inc. expects to earn $150,000 next year after taxes on sales of $2,200,000. Stan's manufactures only one size of garbage can and is located in the small, but beautiful, town of Mount Dora, Florida. Stan sells his cans … 
ECONOMICS
1)The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. What is the elasticity of tires at the tire shop? 
ECONOMICS
1)The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. What is the elasticity of tires at the tire shop? 
Stats
Cans of regular Coke are labeled as containing 12. Statistics students weighted the content of 10 randomly chosen cans, and found the mean weight to be 12.1. Assume that cans of Coke are filled so that the actual amounts are normally … 
math
Stacey used her 20% discount card to buy 7 cans of tomatoes and 15 cans of mushrooms for $10.64. The next day Brian spent $ 7.21 on 17 cans of tomatoes and 5 cans of mushrooms in a "30% off" sale. Find the undiscounted pre sale price … 
Statistics
30 randomly selected cans of Coke are measured for the amount of cola in ounces. The sample values have a mean of 12.18 ounces and a standard deviation of 0.118 ounces. Test the claim that cans of coke have a mean amount of cola greater …