Compute the price elasticity of demand when price changes

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Reference no: EM1357548

Price per pair 100 80 60 40 20
Quantity demanded(in pairs) 10 14 18 22 26

(a) Compute the price elasticity of demand when price changes from $100 to $80 per pair using the average formular.

(b) If prices can only be quoted in multiples of $10, what price should be charged per pair to miximize revenue?

Reference no: EM1357548

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