Question

. You manage a store that sells Nag Champa Incense. When the price of Nag Champa...

. You manage a store that sells Nag Champa Incense. When the price of Nag Champa is $3.50 you sell 400 per month. When the price of Nag Champa is $2.50 you sell 600 per month. What is the price elasticity of demand for Nag Champa?

A. 0

B. .83

C. 1.2

D. 2.1

E. none of the above.

15b. Is the price elasticity of demand elastic, inelastic, or unit elastic?

15c. What was your original TR?

15d. What is your new TR?

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