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    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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    Point Elasticity = (% change in Quantity) / (% change ...

    Solution Summary

    The solution describes the steps for calculating point elasticity of demand and optimal price.