Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. The demand curve is much more inelastic. The price elasticity of demand has decreased from: -5.76 to -2.70.” Before the campaign your price was $240 per pair of BBB Shorts. What should be the new price? Please show calculations.
Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. The demand curve is much more inelastic. The price elasticity of demand has decreased from: -5.76 to -2.70.” Before the campaign your price was $240 per pair of BBB Shorts. What should be the new price? Please show calculations.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
Problem 6.1IP
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Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chief
economist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. The
demand curve is much more inelastic. The price
-5.76 to -2.70.”
Before the campaign your price was $240 per pair of BBB Shorts. What should be
the new price? Please show calculations.
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