The business manager at Econ Store finds when she increases the price of Econ Cola from $1.00 to $1.25, the quantity sold decreases from 1000 to 600 liters. What is the price elasticity of demand? Is it in the elastic or inelastic part of the demand curve? What are the implications from your findings.

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To calculate the price elasticity of demand we can use the following formula Price Elasticity of Dem... View the full answer