What was the degree of elasticity for the newspaper

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Reference no: EM13889058

A newspaper recently lowered its price from $0.50 to $0.30. As it did, the number of newspapers it sold increased from 240,000 to 280,000

a) What was the price elasticity of demand for this newspaper (Arc/ mid-point formula)?

b) What was the degree of elasticity for the newspaper?

c) A 1% change in the price of the newspaper led to a change in quantity demanded of______?

d) What happened to the newspaper’s total revenue as it dropped its price?

2. Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold. Without calculating the price elasticity value, can you determine whether it is elastic, unit-elastic, or inelastic? Show your work and explain your answer.

Reference no: EM13889058

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