Advanced Placement (AP), 07.05.2021 14:00 Hannahmiller3773
An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS40
each. When the price is reduced to GHS30 sales increase to 6,000 gallons per month.
a.
Calculate the price elasticity of demand for the Yoghurts over this price range.
b. Is demand elastic, unitelastic or inelastic?
c.
Calculate the change in revenue due to the change in price.
Answers: 1
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An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS40
each. When the...
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