Sipho runs a local kiosk specialising in slogan t-shirts. At the end of summer, he hosts a clearance sale and decreases the price of t-shirts from R150 to R120 per unit. The sales log indicates the quantity of t-shirts demanded increased from 60 to 80 units. (a)Calculate the price elasticity of demand over the range of the linear demand curve for tshirts. (b)What type of elasticity is applicable? Explain.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter3: Demand Analysis
Section: Chapter Questions
Problem 6E
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Sipho runs a local kiosk specialising in slogan t-shirts. At the end of summer, he hosts a
clearance sale and decreases the price of t-shirts from R150 to R120 per unit. The sales log
indicates the quantity of t-shirts demanded increased from 60 to 80 units.
(a)Calculate the price elasticity of demand over the range of the linear demand curve for tshirts.
(b)What type of elasticity is applicable? Explain.

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