Pamela sells 10 bottles of olive oil per week at $5 per bottle. She can sell 11 bottles per week if she lowers the price to $4.50 per bottle. The quantity effect would be:

Name: Pamela sells 10 bottles of olive oil per week at $5 per bottle. She can sell 11 bottles per week if she lowers the price to $4.50 per bottle. The quantity effect would be:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The quantity effect is calculated by taking the difference in quantity sold times the new price. So, (11 - 10) bottles * $4.50 = $4.50.

Pamela Sells 10 Bottles of Olive Oil Per Week at $5