Assignment task: The pricing analyst at Richford Triathlon finds that when she increases the price of the Richford Florida triathlons from 650 USD to 750 USD, the event ticket sales drop from 4,000 to 3,800. Show all calculations.
Q1. What is the price elasticity of demand using the midpoint formula? Show all calculations.
Q2. Is current pricing in the elastic or inelastic part of their demand curve?
Q3. What would be a more inelastic price elasticity of demand coefficient?
Q4. Based on your findings, should Richford Florida increase, decrease, or not change the price?
Q5. What if the price increase from 650 USD to 750 USD led to event ticket sales dropping from 4,000 to 2,000? What is the price elasticity of demand in this scenario (use the midpoint formula)? Does this change lead to a pricing strategy change? Should they increase, decrease, or not change the price in this scenario?