George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2 -2.2 -2.6 -1.8 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2 -2.2 -2.6 -1.8 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand ?
-2
-2.2
-2.6
-1.8
Suppose George's marginal cost is $5 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is .
Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
![Certainly! Here is the transcription of the educational content from the image.
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**Week 3 Homework**
**Back to Assignment**
Attempts: [Input Box]
Keep the Highest: [Input Box] / 3
**1. Individual Problems 6-1**
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
- ○ -2
- ○ -2.2
- ○ -2.6
- ○ -1.8
Suppose George's marginal cost is $5 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately [Dropdown Box]. George's desired markup is [Dropdown Box].
Since George's initial markup, or actual margin, was [Dropdown Box] than his desired margin, raising the price was [Dropdown Box].
**[Grade It Now] [Save & Continue] [Continue without saving]**
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This section involves calculating and understanding the concept of price elasticity of demand, which measures how the quantity demanded of a good responds to a change in price. Additionally, you are asked to consider George's pricing strategy in relation to his marginal costs and desired markup.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60715c9c-50bc-465c-b88a-83b84d4f5100%2Fd2081546-d3e0-44a0-b768-74f1a5d2b8f1%2Fxlg78ld6_processed.png&w=3840&q=75)
Transcribed Image Text:Certainly! Here is the transcription of the educational content from the image.
---
**Week 3 Homework**
**Back to Assignment**
Attempts: [Input Box]
Keep the Highest: [Input Box] / 3
**1. Individual Problems 6-1**
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
- ○ -2
- ○ -2.2
- ○ -2.6
- ○ -1.8
Suppose George's marginal cost is $5 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately [Dropdown Box]. George's desired markup is [Dropdown Box].
Since George's initial markup, or actual margin, was [Dropdown Box] than his desired margin, raising the price was [Dropdown Box].
**[Grade It Now] [Save & Continue] [Continue without saving]**
---
This section involves calculating and understanding the concept of price elasticity of demand, which measures how the quantity demanded of a good responds to a change in price. Additionally, you are asked to consider George's pricing strategy in relation to his marginal costs and desired markup.
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