Question 2 The following information reveals the market condition of shampoo: Price ($)/ bottle Quantity demanded (No. of bottles) 50 1500 60 1300 1100 900 70 80 Use midpoint method to calculate the price elasticity of demand of shampoo if the price of shampoo per bottle decreases from $60 to $50. Show your workings and round your answer to 2 decimal places. Based on your answer, would you support the producers of the shampoo to decrease the price in this market? Explain with data support.

Question 2 The following information reveals the market condition of shampoo: Price ($)/ bottle Quantity demanded (No. of bottles) 50 1500 60 1300 1100 900 70 80 Use midpoint method to calculate the price elasticity of demand of shampoo if the price of shampoo per bottle decreases from $60 to $50. Show your workings and round your answer to 2 decimal places. Based on your answer, would you support the producers of the shampoo to decrease the price in this market? Explain with data support.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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