Calculate the implied arc price elasticity of demand

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Arc Price Elasticity. Assume that amazon.com dropped the price on a men's Seiko watch (SGF719) from $120 to $60, and sales jumped from 50 to 100 units per day.

A. Calculate the implied arc price elasticity of demand.

B. Is a further price decrease warranted? Why or why not?

Reference no: EM131235946

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Calculate the implied arc price elasticity of demand : Arc Price Elasticity. Assume that amazon.com dropped the price on a men's Seiko watch (SGF719) from $120 to $60, and sales jumped from 50 to 100 units per day. Calculate the implied arc price elasticity of demand. Is a further price decrease warrante..

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