Asked by
Michael Hendrix
on Nov 04, 2024
Verified
The owner of a local pretzel cart has estimated that if he lowers the price of pretzels from $4.00 to $3.00, he will increase sales from 800 to 1,100 pretzels per day. Using the midpoint formula, the demand for pretzels is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
Midpoint Formula
In economics, it's often used to compute the elasticity of demand or supply, calculating the percentage change in quantity demanded or supplied relative to the percentage change in price.
Price Of Pretzels
The amount of money required to purchase a specified quantity of pretzels.
- Get a solid understanding of how demand elasticity affects total revenue.
- Calculate the effect of price changes using the midpoint formula.
Verified Answer
TB
Learning Objectives
- Get a solid understanding of how demand elasticity affects total revenue.
- Calculate the effect of price changes using the midpoint formula.