Question: When the price is $8, the quantity demanded is 36 units. When the price drops to $6, quantity demanded increases to 52 units. Calculate the

When the price is $8, the quantity demanded is 36 units. When the price drops to $6, quantity demanded increases to 52 units. Calculate the own-price elasticity of demand coefficient. Interpret it.

Over this range, is demand elastic or inelastic, and why?

To increase revenue, at least in the short-run, would you recommend a price increase or a price decrease, and why?

Using the short cut formula, calculate and interpret own-price flexibility of demand. Show formula in detail.

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