2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the%AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?3: Mamon's bakery is famous for its Banana muffins. If they will increase the price from P10 to P15 andthe price elasticity of supply is 1.5. How much will the %AQ? Suggest ways to maximize profit.4: Company X developed a mobile application that could track monthly expenses of households. If thelaunching price is P500 and due to good response from the market the company strategist suggested toincrease the price to P700.lf the %AQ= 30%. As the CEO, will you approve the price increase?

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2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the %AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.3P: (Categories of Price Elasticity of Demand) For each of the following absolute values of price...

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2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the
%AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?
3: Mamon's bakery is famous for its Banana muffins. If they will increase the price from P10 to P15 and
the price elasticity of supply is 1.5. How much will the %AQ? Suggest ways to maximize profit.
4: Company X developed a mobile application that could track monthly expenses of households. If the
launching price is P500 and due to good response from the market the company strategist suggested to
increase the price to P700.lf the %AQ= 30%. As the CEO, will you approve the price increase?

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