A local firm produces three types of Pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd) 12 800 0 100 11 840 0 200 10 880 400 300 9 920 800 400 8 960 1200 500 7 1000 1600 600 6 1040 2000 700 5 1080 2400 800 Calculate price elasticity demand for all three pizzas over the price range £9 to £10. Why does a firm want to know cross elasticity demand?
A local firm produces three types of Pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd) 12 800 0 100 11 840 0 200 10 880 400 300 9 920 800 400 8 960 1200 500 7 1000 1600 600 6 1040 2000 700 5 1080 2400 800 Calculate price elasticity demand for all three pizzas over the price range £9 to £10. Why does a firm want to know cross elasticity demand?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
ChapterB: Differential Calculus Techniques In Management
Section: Chapter Questions
Problem 8E
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A local firm produces three types of Pizza, for delivery to homes in the area. The owners have completed research, to discover the
|
Pizza A (Qd) |
Pizza B (Qd) |
Pizza C (Qd) |
12 |
800 |
0 |
100 |
11 |
840 |
0 |
200 |
10 |
880 |
400 |
300 |
9 |
920 |
800 |
400 |
8 |
960 |
1200 |
500 |
7 |
1000 |
1600 |
600 |
6 |
1040 |
2000 |
700 |
5 |
1080 |
2400 |
800 |
- Calculate
price elasticity demand for all three pizzas over the price range £9 to £10.
- Why does a firm want to know cross elasticity demand?
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