Andrew runs an Ice Cream shop at Unionville during the summer and in July he noticed that he sales were 3000 units so he decided to reduce the price of his ice creams by 20% in August. In August sales went up to 4500 units. What is the Price Elasticity at the new price?
Added by Jeffrey R.
Step 1
Percentage change in quantity demanded = ((New quantity - Old quantity) / Old quantity) * 100 Percentage change in quantity demanded = ((4500 - 3000) / 3000) * 100 Percentage change in quantity demanded = (1500 / 3000) * 100 Percentage change in Show more…
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