When the Price of Digital SLR Cameras Was $2000, Consumers

question 162

Essay

When the price of digital SLR cameras was $2000, consumers bought 4000. When the price fell to $1200, consumers bought 14 000. What was the price elasticity of demand between these two prices, calculated with the midpoint method? Is demand elastic or inelastic?

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Definitions:

Average Annual Revenue

This refers to the amount of money a company earns in a year, on average, from its operations.

Standard Deviation

A metric indicating the extent to which data points diverge from the mean, showing the distribution's spread.

Average Annual Revenue

The mean income generated by a business, entity, or asset within one fiscal year.

Random Sample

A group of people selected from a bigger group, with every person having the same probability of being chosen.