George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
a. What is the price elasticity of demand?
b. Was raising the price profitable?
Sample Solution
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts.
a. What is the price elasticity of demand?
b. Was raising the price profitable?
Sample Solution