The Price Elasticity of Demand for Rosie's Roses Fresh Flowers

question 60

Multiple Choice

The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.40 and is 2.25 other days of the year. If Rosie's Roses faces a constant marginal cost of $2 per rose, what is the profit- maximizing peak- load price to charge the week of Valentine's Day?

• A)$7.00
• B)$5.60
• C)$3.60
• D)$9.50

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