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Jessica simpson sets up shop to sell “buffalo wings.” she observes that if the price drops from $3.50 per order to $2.50 per order, her daily sales rise from 300 to 500 orders. a. what is the price elasticity of demand for jessica’s “buffalo wings? ” b. which price yields the greater total revenue? c. jessica is considering adding a new product, widgets, to the menu. she has experimented and discovered that a 10% increase in the price of wings causes a 20% increase in the quantity of widgets sold. what is the cross elasticity of demand between widgets and wings? are they complements or substitutes? ? d. what is the difference between the price elasticity of demand and the slope of the demand curve? are they the same concept? are they even related concepts?
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Jessica simpson sets up shop to sell “buffalo wings.” she observes that if the price drops from $3.5...
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