3. Kroger store decides to run a price promotion for apple pies. Through market research, they estimate an elasticity of demand for apple pies to be -1.8. During the price promotion, they lower the price of pies by 25%. Before the price drop, they sold 135,000 pies. b. C. above. Are apple pies an inelastic good or elastic good? Interpret the OPE given Given the promotion price change, what would the expected percentage change in quantity be? pie? If the price before the promotion was $6 per pie, what is the new price per

3. Kroger store decides to run a price promotion for apple pies. Through market research, they estimate an elasticity of demand for apple pies to be -1.8. During the price promotion, they lower the price of pies by 25%. Before the price drop, they sold 135,000 pies. b. C. above. Are apple pies an inelastic good or elastic good? Interpret the OPE given Given the promotion price change, what would the expected percentage change in quantity be? pie? If the price before the promotion was $6 per pie, what is the new price per

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

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Similar questions

The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
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