Calculating point elasticity and optimal price
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
© BrainMass Inc. brainmass.com June 3, 2020, 10:33 pm ad1c9bdddfhttps://brainmass.com/business/business-management/calculating-point-elasticity-optimal-price-236892
Solution Preview
Solution:
Point Elasticity = (% change in Quantity) / (% change ...
Solution Summary
The solution describes the steps for calculating point elasticity of demand and optimal price.
$2.19