Calculating point elasticity and optimal price
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Richardson's Stores, Inc. cut prices on Men's Runnng shoes by 2 percent during the first quarter and enjoyed a 4-percent increase in unit sales over the period as compared to a year earlier
a.Calculate the point price elasticity of demand for Richardson's Stores, Inc
b. Calculate the company's optimal shoe price if marginal cost is $10 per unit
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Solution Summary
The solution describes the steps for calculating point elasticity of demand and optimal price.
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Solution:
Point Elasticity = (% change in Quantity) / (% change ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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