George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2 -2.2 -2.6 -1.8 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2 -2.2 -2.6 -1.8 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
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George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand ?
-2
-2.2
-2.6
-1.8
Suppose George's marginal cost is $5 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is .
Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
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1. Individual Problems 6-1
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
-2
-2.2
-2.6
-1.8
Suppose George's marginal cost is $5 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately
.George's desired markup is
Since George's initial markup, or actual margin, was
than his desired margin, raising the price was
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