Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation)
a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year?
b. Using this information, calculate the own-price elasticity of your demand.
a) Currently I use the service 2 times a month (24 times a years), if the price goes down by ...
This posting calculates the own-price elasticity of your demand.