A sporting goods store observes that as they reduce the price of squash balls from $5...

 

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A sporting goods store observes that as they reduce the price of squash balls from $5 to $4, their quantity demanded rises from 200 to 220. Using the midpoint method, the price elasticity of demand, [E], for squash balls is calculated to be: 2.33 20 5 0.05 0.43 A sporting goods store observes that as they reduce the price of squash balls from $5 to $4, their quantity demanded rises from 200 to 220. Using the midpoint method, the price elasticity of demand, [E], for squash balls is calculated to be: 2.33 20 5 0.05 0.43

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