Essay on Managrial Economics Project

Explain the corresponding impact on total revenue for each of the three price ranges identified in part G.

b. (4 pts.) Assume demand elasticity is 1.3 in the $35 - $50 price range. In this range of demand, by what percentage would quantity demanded change if price increases by 9 percent? Show your detailed calculations.

A. The concept of elasticity of demand has played a major role in managerial decision-making. It has greatly helped managers in consideration of whether lowering a price will lead to an increase in demand of a certain product, and if so, to what extent and whether profits would increase as a result of doing so. In this case the concept of demand becomes advantageous in that:

Find the mean, median, SD & IQR for the data in (1) after it has been transformed

Determine how price elasticity of demand affects the decision making of the consumer and of the organization.

Your paper should be between 1750 and 2500 words, in APA format and structured as follows:

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

You could answer this in 2 ways. (1) You could calculate the elasticity in the $15 - $10 range. This is [(100 - 40) / 140] / [(15 - 10) / 25] = [60 / 140] / [5 / 25] = 0.42 / 0.20 = 2.1. Since we have elastic demand in this range we know that to lower the price the total revenue will RISE. or (2) You could simply calculate the total revenue at the two prices -- at $15 total revenue is $15 x 40 = $600, and at $10, total revenue is $10 x 100 = $1000. So obviously total revenue RISES when the price is lowered from $15 to $10.

3. In the accompanying table, assume that the price of ice skates increases from $10 to $20 per pair. Using the midpoint method, calculate the price elasticity of demand for ice skates for hockey

the highest-cost firm in operation breaks even, while the low cost firms will earn profit.

c. Perform a one-factor analysis of variance for the data. Write the table below and interpret the result.

The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very

What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?

Microeconomics Essay The price of electricity has increased substantially in the last three years, as a result of that; there have been apparent changes in the demand for electricity for the consumers and it has affected the producers supply market. In the following essay, we are going to look at the effect of the increase in the price of electricity in South Africa, using the supply and demand framework. The reason for the increase of the price of electricity is to balance out the supply and demand of electricity. The National Energy Regulators of South Africa (NERSA) has approved a 25% increase of the price of electricity for 3years starting from 2010 (Roodt, 2012). Supply and demand are fundamental principles of economics, it is what

In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.