When the price of a toy was $45, a store sold 200 units in one week....

When the price of a toy was $45, a store sold 200 units in one week. Then the store reduced the price of the toy to $20.00 As a result, sale of the toy increased to 25 units in one week.

(a). Calculate price elasticity of demand (5 points). You must show the calculation here. Do not try to copy and paste.

(b). Interpret your results (5 points)

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Rahul Sunny answered 9 months ago

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When the price of a toy was $45, a store sold 200 units in one week....

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