Price elasticity of demand exercise: Suppose that at the "Mia Josefina" hamburger chain, the gourmet hamburger has a starting price of $15 per hamburger and 500 hamburgers are sold per month. Then, due to a price increase, the price settles at $20 per hamburger and the quantity demanded decreases to 400 hamburgers per month.

Initial price: $15 per hamburger Initial quantity demanded: 500 hamburgers

Final price: $20 per hamburger Final quantity demanded: 400 hamburgers

What kind of demand do we have here?

Provide an explanation for your result

Answer rating: 100% (QA)

To determine the type of demand in this scenario we can calculate the price elasticity of dem... View the full answer