The manager of the Kendall Square Bertucci's conducted a pricing experiment in August 2016. For the week of August 14-20, 2016, he lowered the price of Bertucci's signature pizza, the small Bertucci, from $13.00 to $11.00. As a result, weekly sales of the small Bertucci rose from 15,000 to 21,000 (see the table below).

The manager knows his costs did not change from week to week and is confident there were no other external shocks to demand during this time.
-Using the arc or midpoint elasticity formula,the price elasticity of demand for the small Bertucci pizza at the Kendall Square Bertucci's restaurant is ________.
A) 3
B) 2.6
C) 2
D) 1.57

Question

The manager of the Kendall Square Bertucci's conducted a pricing experiment in August 2016. For the week of August 14-20, 2016, he lowered the price of Bertucci's signature pizza, the small Bertucci, from $13.00 to $11.00. As a result, weekly sales of the small Bertucci rose from 15,000 to 21,000 (see the table below).
  
The manager knows his costs did not change from week to week and is confident there were no other external shocks to demand during this time.
-Using the arc or midpoint elasticity formula,the price elasticity of demand for the small Bertucci pizza at the Kendall Square Bertucci's restaurant is ________.
A) 3 
B) 2.6 
C) 2 
D) 1.57

Quizplus · Accepted Answer

The Answer of The manager of the Kendall Square Bertucci's conducted a pricing experiment in August 2016. For the week of August 14-20, 2016, he lowered the price of Bertucci's signature pizza, the small Bertucci, from $13.00 to $11.00. As a result, weekly sales of the small Bertucci rose from 15,000 to 21,000 (see the table below).
  
The manager knows his costs did not change from week to week and is confident there were no other external shocks to demand during this time.
-Using the arc or midpoint elasticity formula,the price elasticity of demand for the small Bertucci pizza at the Kendall Square Bertucci's restaurant is ________.
A) 3 
B) 2.6 
C) 2 
D) 1.57

The Manager of the Kendall Square Bertucci's Conducted a Pricing