Use these figures to calculate price elasticity of demand

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Question: Suppose you own a tax preparation services company, appropriately named "MYBA Services" (MYBA = 'Minimize Your Burden of Assessment') with fixed costs of $3,000/month and marginal costs of $25/appt. If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760 appointments would be sold. a.) (3) Use these figures to calculate the price elasticity of demand for your services. b.) (4) Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.) (4) Given these calculations, what price should you charge for your services, $50/appt or $60/appt? Explain.

Reference no: EM133428861

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