harry, the local sandwiches r us manager, wanted to increase sales. he decided to raise the price of their most popular sandwich, the tuna on rye bread, by 75 cents to $4.25. a month later, when he compared the most recent month sales to the previous month, he saw that dollar sales for tuna on rye went up by 10% and he was satisfied with the results. calculate the price elasticity of demand for the store’s tuna on rye.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.