Due to demand, Smitty began selling small glass block windows for basements and porches in 2022 at an average price of $150. He sold 600 units in his first year. In his second year, he only sold 300 units at an average price of $275. Using the Midpoints formula for price elasticity, calculate the coefficient of price elasticity for his sales of glass block windows. Are Smitty's window sales elastic or inelastic? Should Smitty continue to raise prices for his glass block windows? Explain why or why not.

Answer rating: 100% (QA)

To calculate the coefficient of price elasticity using the midpoint formula we first need to find th... View the full answer