Renee wants to start offering online music lessons and needs to decide how much to charge...
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Renee wants to start offering online music lessons and needs to decide how much to charge for a one hour session in order to compete effectively with in-person music lessons. Based on Renee's understanding of the total market for online and in-person music lessons, she predicts that at a price of $60 per session, demand for her online lessons would be 26% of the total market, while at a price of $65 per lesson, demand would be 21% of the total market. It cannot be assumed that the demand curve is linear. Calculate the midpoint price elasticity of demand for online music lessons. Round your answer to the nearest two decimal places, giving a positive value for elasticity. Renee wants to start offering online music lessons and needs to decide how much to charge for a one hour session in order to compete effectively with in-person music lessons. Based on Renee's understanding of the total market for online and in-person music lessons, she predicts that at a price of $60 per session, demand for her online lessons would be 26% of the total market, while at a price of $65 per lesson, demand would be 21% of the total market. It cannot be assumed that the demand curve is linear. Calculate the midpoint price elasticity of demand for online music lessons. Round your answer to the nearest two decimal places, giving a positive value for elasticity.
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