Elucidate the price elasticity of demand for coke

Reference no: EM1328165

Question about Elasticity

Coca-Cola in dispensers located on a golf course sells for $1.25 a can, and golfers buy 1,000 cans. Assume the course raises the price to $1.26 (assume a penny raise is possible) and sales fall to 992 cans.

a. Using the midpoint formula, what is the price elasticity of demand for Coke at these prices?

b. Assume the demand for Coke is a linear line. Would the elasticity of demand be elastic or inelastic at 75 cents a can?

c. At $2.00 a can?

Reference no: EM1328165

Questions Cloud

When the user presses the start button : When the user presses the start button, a menu display of potential destinations is activated along with a message to user to choose a destination.

Explaining the workforce reduction : What role, if any, length of service should play in making decisions for a reduction-in-force in a non-union organization? Why?

Explain important information about erp systems : Important information about ERP Systems - what size does an organization consider an ERP system? Why does size matter?

Explain regulatory issues with e-business : Explain Regulatory Issues with E-Business and describing the regulatory issues that websites must address

Elucidate the price elasticity of demand for coke : Utilizing the midpoint formula, elucidate the price elasticity of demand for Coke at these prices.

Method which ignores time value of money : write down the name of methods which ignores the time value of money.

Explaining works with a constructive and proactive attitude : How can leaders assure that everyone in the organization has clear goals, follows policies and procedures and works with a constructive, proactive attitude?

The most significant concept regarding technology : What is the most significant concept regarding technology and health care, and why is it significant?

Differentiate corporate strategy from project management : Differentiate corporate strategy from project management. and Identify the implications of organizational culture on project structure.

User Account

All Pages