Demand for advertising is given by: Qd = 30 - 0.0002P + 26V

Qd = quantity demanded
P = price per minute
V = number of viewers

All costs are fixed and the goal is to maximize total revenue. Suppose that the number of viewers is 1 million.

What price should you charge?
How many minutes of advertising to sell?
What is total revenue?

Suppose price is held constant. What will happen to the quantity demanded if due to PVR the number expected viewers falls to 0.5 million? Calculate viewer elasticity based on the two points and explain in words what this value means.

Solution Preview

I think the V is number of viewers in millions. Please check, I am doing the calculations with this, if it is different please make suitables changes in calculations, as know the process.

V= 1 million
Thus, Qd=30-0.0002P+26*1 = 56-0.0002P
Reversing the equation we have
0.0002P = 56-Qd
P=280,000 - 5000Qd
Total Revenues (TR) = P*Qd = ...

This analysis assessment has three parts. It is required to show the formula prior to your complete calculation.
Part I. Using the midpoint method, calculate and interpret the price elasticity of demand for the following situation: a.When the price of oranges increases from $1.00 per pound to $1.50 per pound, quantity demand

I hope you can help me with this:
Question 1
P 0 1 2 3 4 5 6
Qd 600 500 400 300 200 100 0
A. Graph the data above
b. Calculate the elasticity of demand, using the point formula, as price drops from $6 to 5, then from 5 to 4, 4 to 3, 3 to 2, 2 to 1, and, 1 to 0. Show all work.
C. Calculate the price elasticity

Using the midpoints formula, calculate the elasticity coefficient for each price level, starting with the coefficient for the
Price Quantity Total Elasticity Elastic or
Demanded Revenue Coefficient Inelastic
$4 100

The demand schedule for the product 'xyz' is given below:
Price($) Quantity demanded
3 20
4 15
5 11
6 9
7 7
Task: Based on the above data, solve the questions given below:
Compute the point price elasticity of demand for an increase in the p

Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation)
a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year?
b. Using this information, calculate the own-price elasticity of your demand.

A manufacturer has estimated that the demand for its product as
Qx = 500 - 2Px + .5I + .65Pz - 1.8Py
where Qx is the quantity demand, Px is the price, I is average annual income (currently $14,000). Pz and Py are the prices of related goods. Total costs are given by TC = 3,500,000 + 500Q
Suppose that PZ= $300

Suppose the price of apples rises from $3 to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of of apples. Calculate your price elasticity of demand of apples. what can you say about your price elasticity of demand of apples? Is it elastic, inelastic, or unitary Elastic? Be sure to show

The demand function for kingston's product is given by
logQ = 2.01 -0.148LogP + 0.25Log Z
Q = the quantity demanded (in tons) of its product, P = the price ( in dollars per ton), and Z = the price(in dollars of a rival product
a. Calculate the price elastic of demand
b. Calculate the cross elasticity of demand betwe

See the attached file. Using the midpoint formula, calculateelasticity for each of the given changes in demand by a household.
P1 P2 Q1 Q2
Demand for:
a. Long-distance telephone service $0.25/min $0.15/min 300min/month 400min/mth
b. Orange jui