1. Individual Problems 6-1
Jacqueline has been selling 5,000 T-shirts per month for $8.50. When she increased the price to $9.50, she sold only 4,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
O -2.6
O -1.8
O -2.2
O -2
Suppose Jacqueline's marginal cost is $5 per shirt.
Before the price change, Jacqueline's initial price markup over marginal cost was approximately _____. Jacqueline's desired markup is ____.
Since Jacqueline's initial markup, or actual margin, was ____ than her desired margin, raising the price was ____.