(Chapter 6) A company has been selling 800 units of a product per month at a price of $50. Showing your work, calculate the price elasticity that would represent the market's response to a $5 price increase if this increase causes: (a) Sales decline to 720 units per month (b) No sales change at all (c) A sales increase of 40 units per month

(Chapter 6) A company has been selling 800 units of a product per month at a price of $50. Showing your work, calculate the price elasticity that would represent the market's response to a $5 price increase if this increase causes: (a) Sales decline to 720 units per month (b) No sales change at all (c) A sales increase of 40 units per month

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(Chapter 6) A company has been selling 800 units of a product per month at a price of $50.
Showing your work, calculate the price elasticity that would represent the market's response
to a $5 price increase if this increase causes:
(a) Sales decline to 720 units per month
(b) No sales change at all
(c) A sales increase of 40 units per month

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