App, plea * Chapter 3: Problems 3, 4, and 7 Chapter 3 -Problem 3 Answer: The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range. Arc Price Elasticity = (Q₂ - Q₁ / P₂ - P₁) * (P₂ + P₁ / Q₂ + Q₁) Q₁ = 1500 Q₂ = 1800 P₁ = 2.25 P₂ = 1.75 Answer: [(1800 - 1500)/(1…
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