Problem
A firm has just increased its price by 5 percent over last year's price, and it found that quantity sold remained the same.
a. The firm comes to you and wants to know its price elasticity of demand.
b. How would you calculate it?
c. What additional information would you search for before you did your calculation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.