Dasani Water has sales of 4,475 bottles in the month of January and sales decreased to 4,000 in the month of February while the price remained constant at $2.25 a bottle. Meanwhile, the quantity demanded of Fiji Water increases from 2,000 units to 2,500 units from January to February as the price fell from $3.50 to $3.04. Based on your previous answer, if Fiji water prices were to decrease by 5%, what is the predicted impact on sales of Dasani water in percentage terms (round down to the nearest whole number)?

Dasani Water has sales of 4,475 bottles in the month of January and sales decreased to 4,000 in the month of February while the price remained constant at $2.25 a bottle. Meanwhile, the quantity demanded of Fiji Water increases from 2,000 units to 2,500 units from January to February as the price fell from $3.50 to $3.04. Based on your previous answer, if Fiji water prices were to decrease by 5%, what is the predicted impact on sales of Dasani water in percentage terms (round down to the nearest whole number)?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 2E: Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the...

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