When the price of shirts emblazoned with a college logo is $20, consumers buy 150 shirts per week. When the price declines to $19, consumers purchase 200 shirts per week. Based on this information, calculate the price elasticity of demand for logo emblazed shirts.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 6P
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7. Suppose that in a recent market period, the following relationship existed between the price of tablet devices and the quantity supplied and the quantity demanded.

Price

Quantity Demanded (Millions)

Quantity Supplied (Millions)

$330

100

40

$340

90

60

$350

80

80

$360

70

100

$370

60

120

 

8. When the price of shirts emblazoned with a college logo is $20, consumers buy 150 shirts per week. When the price declines to $19, consumers purchase 200 shirts per week. Based on this information, calculate the price elasticity of demand for logo emblazed shirts.

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