The Dixie Chicken currently sells 3,000 burger platters per month for $7, and the own-price elasticity...
Homework Answers
E=-1.3
% increase in price = .7/7 = 10%
So,
-1.3 = % change in quantity demanded / % increase in price
% change in quantity demanded = -1.3*10% = 13%
So, new number of platters, sold will decrease by 13%.
No. of platters to be sold, now = 3000*(1-13%)
No. of platters to be sold, now = 2610
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The
Dixie Chicken currently sells 3,000 burger platters per month for
$7, and the own-price elasticity...
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