Wally's World of Widgets hires you as their full-time economist. After studying their business, you realize that when the price of Widgets is $60.00 they sell 10,000 units a month and when they put Widgets on sale for $45.00 they sell 20,000 units more a month. A. Graph the given information. B.What is the arc elasticity over the relevant range? What does this number mean? I C. Use total revenue to explain if this is a good economic decision.

Wally's World of Widgets hires you as their full-time economist. After studying their business, you realize that when the price of Widgets is $60.00 they sell 10,000 units a month and when they put Widgets on sale for $45.00 they sell 20,000 units more a month. A. Graph the given information. B.What is the arc elasticity over the relevant range? What does this number mean? I C. Use total revenue to explain if this is a good economic decision.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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