Big Alice Ice Cream Parlor reduced its price of an ice cream cone from $1 to...
Big Alice Ice Cream Parlor reduced its price of an ice cream cone from $1 to 90 cents. Sales consequently increased from 1,000 cones per week to 1,050. The approximate price elasticity is
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Homework Answers
The approximate price elasticity is
=-((1050-1000)/((1000+1050)/2))/((0.90-1)/((1+0.90)/2))
=0.46
The above is the answer
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