There are many businesses selling flowers in Brisbane on any given day. A flower shop sells a basic bouquet for $24.99 and sells, on average, 10 bouquets per day. The flower shop decides to decrease the price of the basic bouquet to $20.99 and sells 18 bouquets that day. Which of the following statements are true (to four decimal places): The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 4.9980. The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 1.2495. ⒸA 1% increase in the price of a basic bouquet would lead to a 1.2495% decrease in the quantity of basic bouquets demanded. A 1% decrease in the price of a basic bouquet would lead to a 1.2495% increase in the quantity of basic bouquets demanded.

There are many businesses selling flowers in Brisbane on any given day. A flower shop sells a basic bouquet for $24.99 and sells, on average, 10 bouquets per day. The flower shop decides to decrease the price of the basic bouquet to $20.99 and sells 18 bouquets that day. Which of the following statements are true (to four decimal places): The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 4.9980. The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 1.2495. ⒸA 1% increase in the price of a basic bouquet would lead to a 1.2495% decrease in the quantity of basic bouquets demanded. A 1% decrease in the price of a basic bouquet would lead to a 1.2495% increase in the quantity of basic bouquets demanded.

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

There are many businesses selling flowers in Brisbane on any given day. A flower shop sells a basic bouquet for $24.99 and sells, on average, 10 bouquets per day. The flower shop
decides to decrease the price of the basic bouquet to $20.99 and sells 18 bouquets that day.
Which of the following statements are true (to four decimal places):
The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 4.9980.
The point price elasticity of demand for the basic bouquet of flowers at a price of $24.99 is 1.2495.
ⒸA 1% increase in the price of a basic bouquet would lead to a 1.2495% decrease in the quantity of basic bouquets demanded.
A 1% decrease in the price of a basic bouquet would lead to a 1.2495% increase in the quantity of basic bouquets demanded.

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