Explore BrainMass

Arc elasticity of demand

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

ABC, Inc sells it toys for $15 with a sales volume of 30,000 units per quarter. Assume the price elasticity coefficient is -0.5 and ABC, Inc raises the price to $16 in anticipation of the Christmas season. Estimated 4th quarter sales volume will be?

Use Are formula elasticity of demand.

© BrainMass Inc. brainmass.com March 21, 2019, 8:03 pm ad1c9bdddf

Solution Summary

The Arc formula elasticity of demand is applied.