and Crition Thinking Analysis reactions in the following problems. Interpret the results. paa, and decides that she can charge more. She raises the price to Christine aella banana banana turon for Php 4.00 per piece. She sells 50 Php6.00 per piece and sells 40 pieces. What is the elasticity of demand for her banana turon? a) Solution: b) Interpret the result of the demand elasticity: Jasm 2. Joy Lima manages a Sweet Chocolate Bar Store. She charges P100 per bar for her chocolate, You, the economist, have calculated the elasticity of demand for the chocolate in her town to be 2.5. a) If she wants to increase her total income or revenue, what advice will you give her and why? b) What economic principle apllies? Explain your answer.

and Crition Thinking Analysis reactions in the following problems. Interpret the results. paa, and decides that she can charge more. She raises the price to Christine aella banana banana turon for Php 4.00 per piece. She sells 50 Php6.00 per piece and sells 40 pieces. What is the elasticity of demand for her banana turon? a) Solution: b) Interpret the result of the demand elasticity: Jasm 2. Joy Lima manages a Sweet Chocolate Bar Store. She charges P100 per bar for her chocolate, You, the economist, have calculated the elasticity of demand for the chocolate in her town to be 2.5. a) If she wants to increase her total income or revenue, what advice will you give her and why? b) What economic principle apllies? Explain your answer.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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