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November 14, 2022

Kirby purchases 6 pizzas per month when the price is $15 and 4 per month when the price is $20.Calculate Kirby’s price elasticity for pizza at the price of $15.Is her demand for pizza elastic or inelastic?

Kirby purchases 6 pizzas per month when the price is $15 and 4 per month when the price is $20.Calculate Kirby’s price elasticity for pizza at the price of $15.Is her demand for pizza elastic or inelastic? How much money does Kirby spend on pizza each month before and after the price increase?Does this change correspond with the predicted effect due to the elasticity of demand?

10. [3] Suppose that we observe a pet store offering a promotion to give away goldfish, which they normally sell for $8 each.Could such a promotion possibly increase the store’s revenue?Explain.

11.[6]Suppose that market demand for beach towels in Destin is Q = 500 – 50*P per week.At what price and quantity will consumer spending on towels be maximized, and what is this maximized expenditure per week?

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