Elsa Corporation, a company that manufactures and markets low-end table computers, asked ourfriend Ms. Market Researcher to create the demand curve for its SD 721 model. She conductedsome market research and gave Elsa the demand curve as well as some additional information:350,000 units of SD 721 will sell at a price of $250.(1) What is the point price elasticity if 500,000 units will sell at a price of $200? (2) What is the point price elasticity if 125,000 units will sell at a price of $305?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Elsa Corporation, a company that manufactures and markets low-end table computers, asked our
friend Ms. Market Researcher to create the demand curve for its SD 721 model. She conducted
some market research and gave Elsa the demand curve as well as some additional information:
350,000 units of SD 721 will sell at a price of $250.
(1) What is the point price elasticity if 500,000 units will sell at a price of $200?

(2) What is the point price elasticity if 125,000 units will sell at a price of $305?

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