The Barrington T-shirt Company recently raised the price of its shirts from $2.50 to $3.00. At the old price, 70,000 shirts were sold on an average week. If the company finds that in fact its revenues fall after the price hike, what does this mean about the elasticity of demand for shirts

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 7SQP: Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less...
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Q) The Barrington T-shirt Company recently raised the price of its shirts from $2.50 to $3.00. At the old price, 70,000 shirts were sold on an average week. If the company finds that in fact its revenues fall after the price hike, what does this mean about the elasticity of demand for shirts?

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