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Price elasticity of demand at equilibrium

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Reference no: EM132435981

Problem: You are the manager of a local tea shop called Unicorn Tears. You have the following information about the daily demand for your business 

Qdtea = 50 - 5ptea + 4pcoffee + 6I - 3psugar

Where I is income. Suppose that the current equilibrium price and quantity are ptea*=3 and Qtea*=90. Which of the following statements regarding the price elasticity of demand at equilibrium is true?

Reference no: EM132435981

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