How to find price elasticity for this question: if the price drops from $3.
50 per order to $2.
50 per order, his daily sales rise from 300 to 500 orders.
1)What is the price elasticity of demand for his “chicken wings?”
2) Which price yields the greater total revenue? C.
Peter is considering adding a new product, widgets, to the menu.
He experimented and found out that a 10% increase in the price of wings causes a 20% increase in the quantity of widgets sold.
What is the cross elasticity of demand between widgets and wings? Are they complements or substitutes? D.
What is the difference between the price elasticity of demand and the slope of the demand curve? Are they related or same concept/