Suppose you want to estimate the price elasticity of demand for pizza at the restaurant you manage. In August, you charged on average $9.99 per pizza and sold 812 pizzas, In September, you charged $10.99 per pizza and sold 712 pizzas. You believe that no other factors influenced the demand for your pizza between August and September. What is your elasticity estimate?
Suppose you want to estimate the price elasticity of demand for pizza at the restaurant you manage. In August, you charged on average $9.99 per pizza and sold 812 pizzas, In September, you charged $10.99 per pizza and sold 712 pizzas. You believe that no other factors influenced the demand for your pizza between August and September. What is your elasticity estimate?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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