Golf Widow, Inc manufactures specialty high quality golf carts suitable for use in the hot desert Southwest. Due to the fact that these carts can and are driven on city streets, Golf Widow is considering raising the price of its carts from the current average price of $5,000 per unit. It is currently selling 600 units per month, but has been working off a previous inventory buildup. Golf Widow is trying to bring its quantity demanded down to its maximum output of 500 units per month. If the firm's marketing department estimates the price elasticity of demand to be -3.00 over the range of $5,000 to $7,000 per cart, what will be the new price have to be in order to bring demand in line with capacity?

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The Answer of Golf Widow, Inc manufactures specialty high quality golf carts suitable for use in the hot desert Southwest. Due to the fact that these carts can and are driven on city streets, Golf Widow is considering raising the price of its carts from the current average price of $5,000 per unit. It is currently selling 600 units per month, but has been working off a previous inventory buildup. Golf Widow is trying to bring its quantity demanded down to its maximum output of 500 units per month. If the firm's marketing department estimates the price elasticity of demand to be -3.00 over the range of $5,000 to $7,000 per cart, what will be the new price have to be in order to bring demand in line with capacity?

Golf Widow, Inc Manufactures Specialty High Quality Golf Carts Suitable