2. An exclusive Yoghurt manufacturer sells 4,000 gallons permonth at a price of GHS 40 each. When the price isreduced to GHS 30 sales increase to 6,000 gallons permonth.a. Calculate the price elasticity of demand for theYoghurts over this price range.b. Is demand elastic, unit elastic or inelastic?c. Calculate the change in revenue due to the change inprice.с.

Name: 2. An exclusive Yoghurt manufacturer sells 4,000 gallons permonth at
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Description: 2. An exclusive Yoghurt manufacturer sells 4,000 gallons permonth at a price of GHS 40 each. When the price isreduced to GHS 30 sales increase to 6,000 gallons permonth.a. Calculate the price elasticity of demand for theYoghurts over this price rang

A) Calculate the price elasticity of demand as follows: Thus, the price elasticity of demand is…

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2. An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the price is reduced to GHS 30 sales increase to 6,000 gallons per month. Calculate the price elasticity of demand for the Yoghurts over this price range. b. Is demand elastic, unit elastic or inelastic? c. Calculate the change in revenue due to the change in price.

2. An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the price is reduced to GHS 30 sales increase to 6,000 gallons per month. Calculate the price elasticity of demand for the Yoghurts over this price range. b. Is demand elastic, unit elastic or inelastic? c. Calculate the change in revenue due to the change in price.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

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