Question

At Goodies restaurant the quantity of large pizza sold is 200 at the unit price of $15. suppose the price elasticity of demand for pizza is $1.5, and you would to increase the quantity sold to 250,then the new price must be?​

Answer 1

The new price of pizza when the quantity sold is increased to 250 is $12.45.

What is the new price of pizza?

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (250 / 200) - 1 = 25%

Percentage change in price = 25% / 1.5 = 16.67%

New price = (0.1667 x 15) - 15 = $12.45

To learn more about price elasticity of demand, please check: https://brainly.com/question/18850846

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