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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) Last week Café Bistro reduced its prices on its chicken sandwiches from $3.50 per sandwich to $2.99 per sandwich and it sales for sandwiches increased by 30%, and its sales of soft drinks also increased by 45%.
What is the own price elasticity of demand?
What is the cross price elasticity of demand?
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