4. A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4 per car and parked 1000 cars. This year it raised the parking price to $5 and parked 850 cars. Calculate the piece elasticity of demand using the mid-point formula. Did the owner make a good economic decision in raising the parking prices from one year to another?
4. A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4 per car and parked 1000 cars. This year it raised the parking price to $5 and parked 850 cars. Calculate the piece elasticity of demand using the mid-point formula. Did the owner make a good economic decision in raising the parking prices from one year to another?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4 per car and parked 1000 cars. This year it raised the parking price to $5 and parked 850 cars. Calculate the piece
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