What was the price elasticity of demand at the point on the curve where Dixie was selling?Was demand more elastic Friday or Saturday?
On Friday, Dixie set up a lemonade stand and determined that if she reduced the price for a glass of lemonade by 4%, she sold 12% more glasses of lemonade. Answer the following questions: (a) What was the price elasticity of demand for lemonade on Friday? (b) Should Dixie raise or lower her price to […]