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)?
Chapter6: Elasticities
Section: Chapter Questions
Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...
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Transcribed Image Text: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)?
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