Price elasticity of demand 1. If 220 books were sold at BD 35 at a bookstore and 346 books were sold in total when the price was reduced to BD29 find the PED. (Price Elasticity of demand. 2. Find PED if Q1 is 46 at P1 22 and Q2 is 34 at P2 is 28 3. Calculate the price elasticity of demand for gold where the quantity sold decreases from 575 to 467 when the price rises from BD 22 to BD 25 4. In 2020 Mc Donalds ice cream was 1 BD and they sold 2345 ice creams in a day in an outlet. In 2022 they decided to increase the price to 1.3 BD which resulted in a decrease of ice cream sales to 1879 per day. Was it a good decision to increase the price? Is the demand for ice cream elastic or inelastic in the store? 5. “Discount stores sell relatively elastic goods”. Why do you think they do it? Understand the concept of elasticity and comment on the statement in 2 to 3 sentences.
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