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    Arc price elasticity for the product

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    BWC sells chrome wheels for automobiles. At a price of $600 per set, they sold about 900 sets per month. The new general manager for this product decided that they needed more revenues and increased price to $800. However BWC is now selling 200 chrome wheel sets per month at the new price. What is the arc price elasticity for this product?

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    https://brainmass.com/economics/elasticity/arc-price-elasticity-product-306011

    Solution Preview

    BWC sells chrome wheels for automobiles. At a price of $600 per set, they sold about 900 sets per
    month. The new general manager for this product decided that they needed more revenues and
    increased price to $800. ...

    Solution Summary

    The arc price elasticity is determined.

    $2.19

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