Point Elasticity and Arc Elasticity
Please show the work in answering the below problems. Thank you.
1. B. B. Lean's deluxe garment bag sales recovered from 4,800 units to 6,000 units following a price reduction from $140 to $130 per unit. find out B. B. Lean's arc price elasticity of demand for this product.
2. find out point price elasticity of demand for this product.
3. Assuming the same arc price elasticity of demand find outd in Part A, determine the further price reduction necessary for B. B. Lean to gain a volume of 10,000 units.