Purchase Solution

This post calculates the increase in chocolate syrup sales.

Not what you're looking for?

Ask Custom Question

A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase?

Purchase this Solution
Solution Summary

The solution calculates the increase in chocolate syrup sales.

Solution Preview

This would be set up by the following equation:

Cross elasticity of ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Break-Even and Profit Analysis

    However, in the competitive chocolate syrup market, the price increase may depress sales, causing overall revenues to decline even if the per-bottle price increases.

  • consumption combination

    Alpha will produce only tea and export the 250 pounds of tea to import 250 pounds of chocolate. This consumption combination is denoted.

  • Small business management on Valentine's Day

    The Huffington Post.

  • Brand's product life cycle

    The maturity stage is reached when sales get slower, this is not the case with Tootsie Roll. The reason is that the sales of Tootsie Roll are related to the growth in population.

  • Marketing of 666 Cough Syrup in China

    Trade Sales Promotion Schemes shall be provided to the distributors wherein the leading distributors purchasing in bulk shall be provided additional 10% discounts on every 25% increase in volume of purchase.

  • Product Development Efforts & Promotional Materials

    During the next six months the sales are expected to be 1.5 million bars. Additional advertising and sales promotion will ensure that the sales increase during the first year.

  • Joint product and by product

    Calculate product costs assuming this company decided to make and sell as much maple sugar as possible after filing all syrup orders (i.e., it regarded syrup and sugar as joint products). Use the sales value method.

  • Proposing Solutions for HFCS Subsidisation & Regulation

    References Huffington Post (2011, October 28). Michael Pollan: High-Fructose Corn Syrup Not Necessarily Worse Than Sugar. Breaking News and Opinion on The Huffington Post.

  • How can Porter's Five Forces analyze the chocolate industry?

    Is chocolate a concern for or a benefit to recent health trends in the United States? Then look at new products or products that are not chocolate. Are other sweets affecting sales in the chocolate industry?

View More Related Solutions