Arc price elasticity of demand

Question-

Arc Price Elasticity. Assume that amazon.com cut the price on a 1.10 ct Princess Cut Diamond Solitaire engagement ring from $4,500 to $2,500, and sales rose from 50 to 75 units per week.

1. Calculate the implied arc price elasticity of demand.

2. Is a further price decrease warranted? Why or why not?

Posted Date: 3/18/2014 9:49:27 PM | Location : United Kingdom(UK)

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