Explore BrainMass

Explore BrainMass

    own price elasticity of demand

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    OK I am stumped - A bike shop that goes by the name of Crash and Burn is contemplating a backpack advertising promotion. Monthly sales data from backpack shops marketing the "Crash and Burn" design indicate that the demand curve for the T-shirts can be described as:

    Q = 4,000 - 500P (where Q is backpack sales and P is price).

    a.How many T-shirts could the cafe sell at $5 each?

    b.What price would Crash and Burn have to charge to sell 2,000 T shirts?

    c.Calculate the own price elasticity of demand when the price goes from $5 to $4.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:23 pm ad1c9bdddf

    Solution Summary

    The own price elasticity of demand is determined.