Mac-book air sales are 1.6 million units at $1499.  Apple raises the price by 10%. sales decrease to 1.28 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..
Mac-book air sales are 1.6 million units at $1499.  Apple raises the price by 10%. sales decrease to 1.28 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section19.1: Elasticity: Part 1
Problem 2ST: What does a price elasticity of demand of 0.39 mean?
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Mac-book air sales are 1.6 million units at $1499.  Apple raises the price by 10%. sales decrease to 1.28 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..
Expert Solution
Step 1
Given that,
Mac book sales - 1.6 Million Units at $1499
Apple Price rises - 10%
Mac book sales decrease - 1.28 Million
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