The demand for company X product is given by Q(x) = 12 - 3P(x)+ 4P (y) Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a. Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods X and Y substitutes or complements? c. What is the own price elastici
Please see attached. --- REQUIREMENTS 1 Excel Spreadsheet - Completed Customer Demand Data spreadsheet 1 Memo Report - Analysis of Current and Proposed Pricing Strategy for Profitability ? Include an assessment of whether the current fare maximizes profits. If not, identify the fare that should be charged. Give evide
Suppose that 50 units of a good are demanded at a price of $1 per unit. A reduction in price to $.20 results in an increase in quantity demanded to 70 units. Show that these data yielded a price elasticity of .25. By what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains con
1. Use any figures for prices and quantities to calculate and analyze the arc elasticity of demand relative to price for a product, and extend the analysis to showi ts implications on a product decision. 2. Using fully explained indifference curve analysis, derive a demand curve for a product. As part of your answer, explain
The questions are in the attachment files 1 and 2. --- Question 1 Define or explain the following economic terms: a) Quantity demanded b) Quantity supplied c) Market equilibrium d) Consumer surplus e) Price elasticity of demand Question 2 By using the midpoint formula, calculate the price elasticity f
Given the following demand function: Price Quantity Arc Elasticity Total Revenue Marginal Rev. P Qd(Units) Ed ($) ($/Unit) $12 30 n.a. _________ n.a.
--- 1. In 1998 the fare on Chicago's transit system was 60 cents per ride. This resulted in 711.6 million trips being taken on the system. In 1999 the fare was increased to 80 cents and ridership declined to 692.4 million trips. a. Compute the arc price elasticity of demand for transit ridership in Chicago assuming that
--- 1. The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomac's closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its
How would you explain the following? KinderCare operates the only daycare center in an exclusive neighborhood and they are making a large economic profit. The owners believe that new day cares will soon learn of this highly profitable market & try to enter the market so they decide to begin spending immediately a large amount
What implicit assumptions would an researcher make regarding price elasticity of a magazine that was losing millions of dollars a yr and the CEO suggested raising the subcription price by 50%? The owner feels by raising prices you would lose a large % of subscribers.
If you were asked to estimate the market demand curve and figure the existing Price elasticity of demand for a business' product, what steps would you need to take and what problems might you come across in collecting the data?Would you need to make any simplifing assumptions and what would those be? Would you have problems in
Z-Best Pizza recently decided to raise its regular price on large pizzas from $9 to $12 following increases in the cost of labor and materials. Unfortunately, sales dropped sharply from 8,100 to 4,500 pizzas per month. In an effort to regain lost sales, Z-Best ran a coupon promotion featuring $5 off the new regular price. Cou
The non-customer demand for an ATM transactions is Q = 19,000 - 6,000P. Right now the company handles 10,000 non-customer ATM transactions per day at a fee of $1.50. a. What is the own price elasticity for ATM fees charged to non-customers? At the current ATM fee, should you raise or lower your ATM fees? Why? b. What sh
Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds 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?
Elasticity = (% Change in Quantity)/(% Change in Price) Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples. Calculate your price elasticity of demand of apples.
I am trying to determine own company and cross price elasticities. Here are my numbers: Own company: demand starts at 80 units, increases to 96 price starts at $1.33/unit and decreases to .97 Other company: demand starts at 80 units, increases to 96 price starts at 1.49 and decreases to 1.10 Thank you.
1.By using the appropriate graph , can you explain and illustrate the transfer of consumer surpulus from a perfectly competitive firm to a monopolist. Please use the same graph to also show and explain the dead weight loss which results from monopoly. 2.By using a graph, can you illustrate the long run equilibirium of a firm
A regression model is being used to estimate demand for a type of candy. The following multiplicative exponential demand function is being used; Qd = 6280P^-2.15 A^1.05 N^3.70 ^ = raising to a power Qd = Qty demanded of candy P = price of candy per piece A = Advertising expenditure N = Population of children under th
Please help with the following problem. A monopolistically competitive firm finds that the elasticity of demand facing its brand is -1.5, while its rival faces an elasticity of -2 for its brand. Both firms have a marginal cost of $5 per unit. Using the pricing rule of thumb, determine the profit-maximizing prices both
I need help understanding how to answer the attached question. I have included my answer thus far in the attachment.
If the price is $15 the company sells 27 units. If price is $12, the company sells 42 units. The company wants to earn a 20% return on sales. ATC=MC=$10. How do I determine the optimal price using the linear approximation method, cost plus pricing and mark-up pricing. How does the arc formula for elasticity factor in to the
Help me with the questions below? 1. When price is above the equilibrium level (as with a price floor), suppliers offer more than demanders wish to buy. T F 2. Suppose the numbers in parenthesis represent two points on a line: (59 billion quarts; $4) and (78 billion quarts; $6). The line is likely a a. production poss
Just answers the questions below using some economic concepts. 1.) Find a real world example depicting price elasticity of demand. Be sure to explain how the concept of price elasticity demand would impact the seller's revenues should the seller choose to raise the price of the product. Please do not use the example for the q
1. Which gives you a greater utility 12 gallons of water per day or 20 gallons of water per day? 2. At which level do you get a greater marginal utility: 12 gallons per day or 20 gallons per day? 3. A rise I the price of a certain commodity from $15 to $20 reduces quantity demanded from 20, 000 units to 5,000 units. Can y
How will each of the following affect the position of the demand curve for videocassette recorders (VCRs)? a. An increase in the price of VCR tapes. b. A decrease in the price of VCRs. c. An increase in per capita income. d. A decrease in the price of movie tickets.
Define the elasticity of demand. What has happened to the demand elasticity for most firms during the last 10-15 years? Explain
QiPod = 100,000 - 250 PiPod + 100 PDell + 50 PSamsung + 1,000 Y + 200 ADVApple iPod QiPod is quantity demanded in hundreds, PiPod is the price of Apple iPod in dollars, PDell is the price of the Dell DJ in dollars, PSamsung is the price of Samsung in dollars, Y is per capita income measured in thousands of dollars, and ADVAp
Can you please give me some examples of price elasticity and Starbucks?
Subject: Price Elasticity Details: I am looking for some direction working on the following spreadsheet on price elasticity with in an airline enviornment. The details are in the project attachments
1. You read in the paper a story about grapefruit markets. The story contains the following information: A. There has been a frost in the "Grapefruit belt" and a lot of lost plants. B. There is a new kind of fertilizer that can increase yields by 20% C. The International Union of Grapefruit Pickers and Packers has just neg