Question: 2 answer the following a when the price of sand...
2) Answer the following:
a) When the price of sand increased by 10% this winter, stores starting stocking and selling 3% more sand. Calculate and interpret this elasticity. How price sensitive are these stores and why?
b) When Windy’s increased the price of their ice cream by 2%, sales of fries decreased by 4%. Calculate the appropriate elasticity and explain the relationship between ice cream and fries at Windy’s.