Last month ricks bike shop inc. increased the price on the , Ask an Expert

Economics

Last month, Rick's Bike Shop, Inc. increased the price on the 22-ounce can of Camp A bearing grease by 4.5 percent. In response, sales dropped by 9 percent.

A) Calculate the point price elasticity of demand for Camp A bearing grease.

B) Calculate the optimal price for Camp A bearing grease if marginal cost is $3.75 per unit.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9472890

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