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Group A (sales per week) 1.55 million Group B (sales per week) 1.50 million Volume of sales before the 10% discount Volume of sales after the 10% 1.65 million 1.70 million discount a. Using the midpoint method, calculate the price elasticities of demand for group A and group B.

Group A (sales per week) 1.55 million Group B (sales per week) 1.50 million Volume of sales before the 10% discount Volume of sales after the 10% 1.65 million 1.70 million discount a. Using the midpoint method, calculate the price elasticities of demand for group A and group B.

ENGR.ECONOMIC ANALYSIS
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: Amazon.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Amazon.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A (sales per week) 1.55 million Group B (sales per week) 1.50 million Volume of sales before the 10% discount Volume of sales after the 10% discount 1.65 million 1.70 million a. Using the midpoint method, calculate the price elasticities of demand for group A and group B.
Transcribed Image Text:Question: Amazon.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Amazon.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A (sales per week) 1.55 million Group B (sales per week) 1.50 million Volume of sales before the 10% discount Volume of sales after the 10% discount 1.65 million 1.70 million a. Using the midpoint method, calculate the price elasticities of demand for group A and group B.
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