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    Elasticity

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    Optimal Markup: Optimal Markup. Jerry Jones is a managing partner of Camden & Associates, Inc., a New York based management-consulting firm. Jones has asked you to complete an analysis of profit margins for Norton Inc., a client firm. Unfortunately, your predecessor on this project was abruptly transferred, leaving only sketchy information on the client's pricing practices.

    Optimal Markup. Jerry Jones is a managing partner of Camden & Associates, Inc., a New York based management-consulting firm. Jones has asked you to complete an analysis of profit margins for Norton Inc., a client firm. Unfortunately, your predecessor on this project was abruptly transferred, leaving only sketchy information on

    Price elasticity of demand

    Quantity Price Elasticity Demanded 100 $ 5 80 $10 60 $15 40 $20 20 $25 10 $30 1. Determine the price elasticity of demand at each quantity demanded using the formula % chg in QD divided by % chg in price. 2. Redo #1 using price changes of $

    Price Elasticity and Inelastic Demand

    We recently added the STARZ Network to our premium cable tier. Currently, 852 of our basic service subscribers purchase this service at our current price of $10.50 per month. As you know, our current contributions from STARZ are not as high as we expected. I would like you to evaluate our current price to see if we might be abl

    Elasticity

    Revenue at Palm was $1.4 billion for the nine months ending March 2, up 97% for the same period last year. Management attributes the increase in revenues to a 137% increase in PDA shipments, despite a 17% drop in the average blended selling price of Palm's line of PDA's. Given this, is it surprising that Palm's revenue increas

    Price Elasticity

    Suppose the price elasticity of demand for cigarettes is - 0.46 in the short run and -1.89 in the long run, the income elasticity of demand for cigarettes is 0.50 and the cross-price elasticity of demand between cigarettes and alcohol is -0.70 Suppose also that the price of cigarettes, the income of consumers, and the price of

    Utility, Elasticity and Demand

    Suppose you are in charge of designing a TV commercial campaign for a new shampoo. What will be the goal of the campaign and your methods for achieving the goal? Explain by using the concepts of utility, price elasticity, and demand. Draw the required curves using Microsoft Excel and prepare a Microsoft Word document containin

    Price Elasticity of Demand and Inverse Demand Function

    4. Given the following cost and inverse demand function P(Q) = 50 - .00025Q C(Q) = 361, 250 + 5Q + .0002Q² a. Find the total revenue? b. Find the marginal and average costs and graph the functions in the ranges of Q= 40,000, 42500, 45,000. c. Briefly explain the point of intersection between MC and ATC (AC) in terms

    Arc Elasticity, Demand Curve, Total Revenue

    The Jaimison Company produces steel. Its demand curve is linear. Its current price and quantity are $237.50 and 1,050 tons, respectively. Management determines that if they lower the price to $200, the will sell 1,200 tons of steel. a. Calculate the arc price elasticity between these two points on the demand curve. b.

    Monopoly & Monopolistic Competition - The Wilson Company's marketing manager

    Need help on the following problem. Having difficulty coming up with solutions. Thanks The Wilson Company's marketing manager has determined that the price elasticity of demand for its product equals -2.2. According to studies he carried out, the relationship between the amount spent by the firm on advertising and its s

    Marginal Cost Price Elasticity

    I need clarification The price elasticity of demand for senior citizens purchasing coffee from the coffee shop is -5 while non senior citizens have a price elasticity of demand equal to -1.25. If it cost the coffe shof $0.02 to produce a coffee, the optimal price for a cup of coffee for senior citizens and resultant marginal

    Demand and supply, Elasticities and Support Price

    1. A product's Demand Curve is : Qd = 50 - 2P, and Supply Curve is Qs= 40 + P. a. When P=$10, what is the difference, if any, between Qd and Qs? b. When P=$2, what is the difference , if any, between Qd and Qs? c. What are the equilibrium values of P and Q? 2. The demand curve is: Qd = 500 - 1/2P.

    Demand Analysis & Estimation

    I. Rank the following (please provide a brief explanation as well) from the most to least elastic. 1. beef 2. salt 3. European vacation 4. steak 5. Honda Accord 6. Dijon mustard II. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price Qt

    Microeconomics concepts: surplus or shortage?

    7. What entity establishes a price ceiling and does it require government sanction for violators? Will it result in a surplus or a shortage? 8. If a producer overproduces and sets the price of his product too high to allow him to sell all of his production, does this cause a surplus or an excess supply condition? 9. Wha

    Household Behavior and Consumer Choice

    1. Using the midpoint formula, calculate elasticity for each of the following changes in demand by a household. P1 P2 Q1 Q2 Demand for: Long-distance telephone service 0.25 per min 0.15 per min 300min per mo. 400 min per mo. Orange juice 1.49 per qt. 1.89 per qt 14 at per mo. 12

    Process balance of payments deficit correction

    How do (a) the elasticities approach, (b) the absorption approach, and (c) the monetary approach, explain the process by which a balance of payments deficit is corrected under a flexible exchange rate system?

    Elasticity of 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

    Domino's Pizza

    In 1999, Domino's Pizza, a corporate sponsor of the Washington Redskins (a football team) offered to reduce the price of its medium-size pizza by $1 for every touchdown scored by the Redskins during the previous week. Until that year, the Redskins weren't scoring many touchdowns. Much to the surprise of Domino's, in week one o

    Pricing with marketing power

    I am having trouble with the project materials on this particular project. I am uncertain to what they are asking in reference to the pricing scenarios using the market power.

    Price Elasticity Home Building

    Need to find an articles about price elasticity in the home building industry? What is the price elasticity? Is it elastic or inelastic?

    Pricing with Market Power

    Please help me so I can complete the assignment: Prepare a 400- to 700-word report that describes the profit-maximizing prices Aveta Labs should charge for Taziclor in Europe and the United States. Include the following in your report: Identify the prices that maximize profits in Europe and the United States. Explain w

    If the price elasticity of demand for cable TV connections is high and the price elasticity of demand for movies shown in theatres is less than 1, what strategy would you expect cable TV firms to follow in arranging for initial connection?

    Please see attached and explain with clear reasoning and use diagrams where appropriate. Thank you. Question 1: a) If the price elasticity of demand for cable TV connections is high (for example greater than1.5) and the price elasticity of demand for movies shown in theatres is less than 1, what strategy would you expect ca

    Automotive Industry Research

    Please help me with the following: Write a paper that provides an economic profile of the automotive manufacturing industry. Discuss how the following impacts this industry. 1. Shifts and price elasticity of supply and demand. 2. Positive and negative externalities. 3. Wage inequality. 4. Monetary and fiscal policies.

    Assume the demand for plastic surgery is price inelastic.

    Assume the demand for plastic surgery is price inelastic. Are the following statements true or false? Explain. a. when the price of plastic surgery increases, the number of operations decreases. b. the percentage change in the price of plastic surgery is less than the percentage change in quantity demanded. c. changes in th

    Show the effect on the demand curve

    For each of the following changes, show the effect on the demand curve, and state what will happen to the market equilibrium price and quantity in the short run: a. The price of substitute good rises. b. Consumer incomes fall, and the good is normal. c. Consumer incomes fall, and the good is inferior. If a product's dem