Social Studies, 27.10.2021 01:00 bajus4121
(a) Identify whether the price of sprockets from $4 to $3 is elastic, unit elastic, or inelastic. Explain.
(b) What is the price of sprockets that maximizes the hardware store's revenue? Explain.
(c) The price of sprockets is $1. If the hardware store wants to increase its revenue, how should it change the price? Explain.
(d) Using the midpoint formula, calculate the price elasticity of demand for sprockets when price increases from $2 to $3. Identify the coefficient as elastic, unit elastic, or inelastic.
(e) Using the midpoint formula, calculate the price elasticity of demand for sprockets when price decreases from $5 to $4. Identify the coefficient as elastic, unit elastic, or inelastic.
(f) Based on the scenario in part (e), how does the decrease in price affect the hardware store's revenue?
Answers: 3
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(a) Identify whether the price of sprockets from $4 to $3 is elastic, unit elastic, or inelastic. Ex...
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