Canaanville terrace water co pumps magic spring sparking, Business Economics

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Canaanville terrace water co pumps magic spring sparking

Canaanville Terrace Water Co. pumps Magic Spring Sparking Water from an underground spring. This water is packaged in 1.5 liter bottles for sale to local residents. At a price of $1.50 per bottle, 1000 bottles can be sold per day. When the price is increased to $2.00 per bottle, only 900 bottles can be sold per day.Using the Midpoint formula, calculate the price elasticity of demand.

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