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During 2016 a regional supplier of ice cream experimented with price levels at its numerous retail shops to determine the price elasticity of its key product lines. The following table depicts prices and quantities of demand for a single dip of premium ice cream across all of its shops from January 1, 2015 to June 30, 2015 and from July 1 to December 31, 2015. Answer the following questions in regard to these prices and quantities:Using the Midpoints Formula, determine the coefficient of price elasticity for the firm's premium ice cream.
Are there certain seasonal differences in demand for ice cream that could taint the price elasticity analysis? Explain.
Is there potential for a tainted study because of changes in external variables over the course of the year? For example, its major competitor won a national award for the best regional ice cream value.
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