2. Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a ‘half off" sales promotion for Spaghetti dinners, Joe finds that nightly dinner sales increase from 30 per night to 70. Normally, the dinners sell for $8.00. a. What is the arc price elasticity of demand?

2. Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a ‘half off" sales promotion for Spaghetti dinners, Joe finds that nightly dinner sales increase from 30 per night to 70. Normally, the dinners sell for $8.00. a. What is the arc price elasticity of demand?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2PA

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