Answer
2 years
Work Step by Step
Current demand will support 4 stores. One additional store is a 25% increase.
$25\%\div \frac{12.5\%}{year}=2\ years$
Microeconomics: Principles, Applications, and Tools (8th Edition)
by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen
Published by
Prentice Hall
ISBN 10:
0-13294-886-9
ISBN 13:
978-0-13294-886-9
Chapter 5 - Elasticity: A Measure of Responsiveness - Exercises - 5.4 Other Elasticities of Demand - Page 123: 4.6b
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