George has been selling 5,500 T-shirts per month for $9.50. When he increased the price to $10.50, he sold only 4,500 T-shirts. What is the price elasticity of demand? What is the original price markup? Will you advise George to increase the price to generate more profits if the marginal cost per T-shirt is $6?
George has been selling 5,500 T-shirts per month for $9.50. When he increased the price to $10.50, he sold only 4,500 T-shirts. What is the price elasticity of demand? What is the original price markup? Will you advise George to increase the price to generate more profits if the marginal cost per T-shirt is $6?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 22SQ
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George has been selling 5,500 T-shirts per month for $9.50. When he increased the price to $10.50, he sold only 4,500 T-shirts. What is the price
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