1. Your company has experimented with different prices over the past few months, and has obtained the following data: in October, your product's price (P) was $22.00 and the quantity sold (Q) was 130 units; in November, P = $21.50 and Q = 135 units; in December, P = $21.00 and Q = 140 units; and in January, P = $20.50 and Q = 143 units.

a. Find the elasticity of demand between October and November. How would you characterize demand between these two months?

b. Find the elasticity of demand between December and January. How would you characterize demand between these two months?

c. Are you surprised that the elasticity values differ, even for the same product?

Answer rating: 100% (QA)

To calculate the elasticity of demand we can use the formula Elasticity of Demand Change in Quantity Demanded Change in Price Lets calculate the elast... View the full answer