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Problem - Demand-related Pricing Calculations
a. Calculate the price elasticity of demand for a restaurant's pizza under the following conditions:
Old price: $12 Old quantity: 1500/month
Total Revenue: $18,000
New price: $15 New quantity: 1000/month
Total revenue: $15,000
b. If the new quantity sold per month were 800 (instead of 1000), what would be the price elasticity of demand?
Common Law Liability Exposure. Risk Capital Limited, a Delaware corporation, was considering the purchase of a substantial investment in Florida Sunshine.
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