When the price of a Sony portable CD player rises from $125 to $150, quantity demanded falls from 750 per week to 600.  Calculate price elasticity of demand using midpoint method and what would happen to total revenue? Draw a graph to show the changes in price and quantity.  What can we say about the price elasticity of demand for Sony portable CD players? Draw a graph to show price elasticity of demand? 

Answer rating: 100% (QA)

Solution ... View the full answer