The discussion revolves around calculating the change in sales based on price elasticity of demand. The original poster presents a scenario with a price elasticity of 1.6 and an initial sales figure of 10,000, seeking to determine the new sales number after a price increase from 4.99 to 10.00.
The discussion is ongoing, with participants exploring different approaches to the problem. Some guidance has been offered regarding the need to derive a formula, but there is no explicit consensus on the correct method or outcome.
One participant notes that the problem does not fit the typical homework format, indicating a potential lack of formal constraints or requirements. There is also a mention of uncertainty regarding the necessary formulas for solving the problem.
EdmureTully said:Homework Statement
Given a price elasticity of 1.6 and an initial sales number of 10000 what would be the sales number if price went from 4.99 to 10.00?
Homework Equations
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
The Attempt at a Solution
1.6*200 *100 -10000
it gives me 220000, but that can't be right
EdmureTully said:I don't have that formula. It's not even a homework problem. I just want to know how to determine the new quantity.