Optimal Price. Last month, Rick's Bike Shop, Inc. increased the price on the 24 ounce can of bearing grease by 1%. In response, sales dropped by 4%.
A. Calculate the point price elasticity of demand for bearing grease.
B. Calculate the optimal price for bearing grease if marginal cost is $4.50 per unit.
This solution helps calculate the point price elasticity of demand and optimal price for bearing grease.