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A local cafe recently raised its price of sandwiches from $4 to $5

Economics

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A local cafe recently raised its price of sandwiches from $4 to $5. This caused the number of sandwiches sold to decrease from 5,000 to 4,000 per month.

• Over this price range what was the elasticity of demand for the sandwiches?
• What was the degree of elasticity for this sandwich?
• A 1% change in the price of this sandwich led to a change in quantity demanded of?
• What happened to the cafe's total revenue as it raised its price?