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Calculating arc price elasticity of demand

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.

A. find out the implied arc price elasticity of demand.
B. Is a further price decrease warranted? Why or why not?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925675

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