Answer to Question #16806 in Microeconomics for capitalboy
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae
from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased
from 1,500/day to 1,800/day. Compute the arc price elasticity of demand
over this price and consumption quantity range.