You have been hired as a market analyst and your first task is to estimate the own-price elasticity for one of the products that your employer sells in a competitive market. In reviewing the historical data, you note that when the market price was $72.15 a unit, the firm sold 16,412 million units a month. When the firm decreased price to $37.85 a unit, the firm sold 26,980 units. Estimate the own-price elasticity of demand to the hundredths place (two decimal places).

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Calculating OwnPrice Elasticity of Demand Heres how to estimate the ownprice elasticity of demand ba... View the full answer