What is the percentage change in sports car sales, given the elasticity?

Explain the role of utility maximization in consumer choice
December 25, 2020
Suppose the elasticity of labor supply is high at the current level of employment. Does this tax have more of an effect on the wage received by workers, or on the quantity of labor supplied?
December 25, 2020

Suppose the price elasticity of demand for sports cars is 2. When the price is $40,000 per car, a local dealer sells 50 cars over a year. (LO6A-1) a) If the price per car rises to $44,000, what is the percentage change in the price? b) What is the percentage change in sports car sales, given the elasticity? c) What is the new sales level for sports cars? d) What was the original revenue of the auto dealership from sports car sales? What is the new revenue? Did the price increase reduce or increase revenue?