Determinants underlying price elasticity of demand

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Reference no: EM13892073

1) Discuss fully the determinants underlying price elasticity of demand.

2) SeeClear T.V., a cable hook-up, used to sell its service for $22.00 a month and it managed to sign up 42,000 customers. Due to increased equipment costs and the stock-holders' desire to increase profits, the company raised the price to $28.00 a month. In reaction, 2,500 customers canceled their subscriptions. Calculate the price-elasticity of demand for this product. Show the formula for calculating price elasticity of demand and how you calculated your results. What happened to total revenue and why?

Reference no: EM13892073

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