Answered: Assume that amazon.com dropped the…

Assume that amazon.com dropped the price on a men's Seiko watch (SGF719) from $120 to $60, and sales jumped from 50 to 100 units per day. A. Calculate the implied arc price elasticity of demand.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section5.3: Determinants Of Price Elasticity Of Demand

Problem 1YTE: According to the previous discussion, what factors influence the price elasticity of demand for...

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Question

Assume that amazon.com dropped the price on a
men's Seiko watch (SGF719) from $120 to $60, and
sales jumped from 50 to 100 units per day.
A. Calculate the implied arc price elasticity of
demand.

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