Question 14 Mike's Mechanic Shop increased its total monthly revenue from $6,500 to $7,200 when it reduced the price of an oil change from $65 to $50. The price elasticity of demand for Mike's Mechanic Shop is [NOTE: Total Revenue Price x Quantity] = 1.38 0.72 0.39

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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Question 14
Mike's Mechanic Shop increased its total monthly revenue from $6,500 to $7,200 when it reduced
the price of an oil change from $65 to $50. The price elasticity of demand for Mike's Mechanic Shop
is
[NOTE: Total Revenue Price x Quantity]
1.38
0.72
0.39
Question 15
Hilary's Flower Shop increased its total monthly revenue from $3,500 to $4,200 when it reduced the
price of a bouquet of flowers from $12.50 to $10.00. The price elasticity of demand for Hilary's
Flower Shop is
[NOTE: Total Revenue - Price x Quantity]
1.8
0.56
0.82
Transcribed Image Text:Question 14 Mike's Mechanic Shop increased its total monthly revenue from $6,500 to $7,200 when it reduced the price of an oil change from $65 to $50. The price elasticity of demand for Mike's Mechanic Shop is [NOTE: Total Revenue Price x Quantity] 1.38 0.72 0.39 Question 15 Hilary's Flower Shop increased its total monthly revenue from $3,500 to $4,200 when it reduced the price of a bouquet of flowers from $12.50 to $10.00. The price elasticity of demand for Hilary's Flower Shop is [NOTE: Total Revenue - Price x Quantity] 1.8 0.56 0.82
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