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Price elasticity of demand for bushels of corn

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Pamela Sue, proprietor of Heartland Supermarkets would like to raise her current sales of corn from 250 bushels per week to 500 bushels per week. Her current price of a bushel of corn is $14. Given a price elasticity of demand of -2, determine a new price which will cause sales of corn to rise from 250 to 500 bushels per week.

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Solution Summary

This solution shows how to use price elasticity of demand to calculate the price that a supermarket proprietor must charge to double her weekly corn sales.

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The formula for price elasticity of demand (Ed) is:

Ed = (% change in ...

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