The Furthur Phish Company has recorded the following data for three of their products: $$\begin{array} { l c c c c }
\text { Product } & \text { Old Price } & \text { New Price } & \text { Old Quantity } & \text {New Quantity } \
\mathrm { X } & \$ 14.75 & \$ 14.25 & 2,000 & 2,200 \
\mathrm { Y } & 19.25 & 18.50 & 3,000 & 3,300 \
\mathrm { Z } & 24.50 & 27.50 & 4,000 & 3,600
\end{array}$$
Required:
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

Question

The Furthur Phish Company has recorded the following data for three of their products: $$\begin{array} { l c c c c } 
\text { Product } & \text { Old Price } & \text { New Price } & \text { Old Quantity } & \text {New Quantity } \
\mathrm { X } & \$ 14.75 & \$ 14.25 & 2,000 & 2,200 \
\mathrm { Y } & 19.25 & 18.50 & 3,000 & 3,300 \
\mathrm { Z } & 24.50 & 27.50 & 4,000 & 3,600
\end{array}$$ 
Required: 
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

Quizplus · Accepted Answer

The Answer of The Furthur Phish Company has recorded the following data for three of their products: $$\begin{array} { l c c c c } 
\text { Product } & \text { Old Price } & \text { New Price } & \text { Old Quantity } & \text {New Quantity } \
\mathrm { X } & \$ 14.75 & \$ 14.25 & 2,000 & 2,200 \
\mathrm { Y } & 19.25 & 18.50 & 3,000 & 3,300 \
\mathrm { Z } & 24.50 & 27.50 & 4,000 & 3,600
\end{array}$$ 
Required: 
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

The Furthur Phish Company Has Recorded the Following Data for Three