Reference- https://www.chegg.

com/homework-help/questions-and-answers/2016-
regional-supplier-ice-cream-expemerous-retail-shops-determ514538
Question:
During 2016 a regional supplier of ice cream experimented with price levels at its numerous
retail shops to determine the price elasticity of its key product lines. The following table
depicts prices and quantities of demand for a single dip of premium ice cream across all of its
shops from January 1, 2015 to June 30, 2015 and from July 1 to December 31, 2015. Answer
the following questions in regard to these prices and quantities:

Quantity Demanded Single-Dip @ Quantity Demanded Single-Dip @

Ice Cream Price
$2.50 Per Dip for January 1 to June $3.00 Per Dip for July 1 to
Elasticities
30, 2015 December 30, 2015

6 Months of
600,000 Cones/Cups 575,000 Cones/Cups
Sales

Using midpoint formula, Subsequent to their price elasticity study, the ice cream company
was recently named as the best regional ice cream producer in the country. Are there certain
seasonal differences in demand for ice cream that could taint the price elasticity analysis?

ANS-
Context header: Variables
Context explanation: Variable refers to any quantity that consist any value. Variable ha wide
use in different filed like in economics, mathematics, science. Basically there are two variable
use in every field that in dependent variable and independent variable.
Answer and explanation:
| Ice cream price | quantity demand January to June | quantity demand July to December |
| 6 month | 600000 cups | 575000 cups |
Analyzing the midpoint price elasticity that changes from January to December
Quantity changes form 600000 cups to 575000
Q1 = 600000
Q2 = 575000
P1 = $3
P2 = $2.50
Price changes from $2.50 to $3
  ΔQ 
 Q1+Q2 
 
 N 
=  
 ΔP 
 P1-P2 
 N 
 
 
 
 575000-600000 
 1175000 
 
=  2 
 3-2.5 
 5.5 
 2 
 
 
= -0.23