Assume lawyer services have an elasticity of demand of 2.0 in absolute value. Currently, a lawyer charges $300 per consultation and she has 100 consultations per week. If she raises her rate to $375 per consultation (a 25% increase) her revenue wil (use the general formula for elasticity not the midpoint formula) rise from s30.000 per week to $31500 per week rise from $30.000 per week to $33750 per week fall from $30.000 per week to $18750 per week fal from $30,000 per week to s26000 per week

Q: over the last month, are they optimizing? Justify your answer.  Show solution.

A: Given : Elasticity of demand=-2 Price per day=160 MC=0 Parking lot capacity=75%

Q: Suppose the price of Merinda falls from N$16 to N$12 per bottle and the quantity demanded rises from…

A: Elasticity measures the responsiveness of quantity demanded to changes in price

Q: exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the…

A: Answer a. The elasticity of demand =(change in quantity/average quantity)(change in price/average…

Q: Demand for personal computers (PCs) can be characterized as point elasticity as follows: Price…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: you sell twi different goods : printer and toner catridges. the price elasticity of demand for the…

A: For the printer, Initial revenue (Rp0) = P0 x Q0 = Rm 15,000 Price elasticity of demand = % Change…

Q: attempt to increase revenues and profits, a firm is considering a 4% increase in price, an 11%…

A: Price elasticity of demand depicts how much consumer responds with the change in the price level.

Q: You make a lightweight compact foldable windbreaker. Your brand, Desert Wind Jackets, is well…

A: Formula to be used: Lerner Index = - 1  E  = (P - MC)P  where,  E stands for demand elasticity.

Q: Assume lawyer services have an elasticity of demand of 0.5 in absolute value. Currently, a lawyer…

A: Elasticity is a measure of a variable's sensitivity to a change in another variable, most frequently…

Q: The elasticity of demand for a firm's product is -4 and its advertising elasticity of demand is…

A: Elasticity The degree to which individuals, consumers, or producers adjust their demand or the…

Q: Suppose the elasticity of demand for tickets to Broadway shows is 2.0 for students and 0.3 fo senior…

A: Third Degree Price discrimination is the practice of charging different prices to different groups…

Q: The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: The demand curve for a product is given by Qdx = 1,200 − 3Px − 0.1Pz where Pz = $300. a. What is the…

A: a.  Own price elasticity of demand:

Q: The Future Flight Corporation manufactures a variety of Frisbees selling for $2.98 each. Sales have…

A: A. The price change in Soaring Frisbees is -26% (from $3.49 to $2.59). The change in quantity of…

Q: The demand curve for a product is given by QDx = 1,200 – 3Px – 0.1Pz, where Pz=$300. a) What is the…

A: Own price elasticity of demand is the measure of change in the quantity demanded of a product due to…

Q: A premier League football club estimate that whilst the price elasticity of demand for its first…

A: The measure of price elasticity of demand is used to determine by what percentage the quantity…

Q: The Burrito Barn is considering a price reduction on the Firegut Burrito, which currently sells for…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: If the price elasticity is -3 and RM 100 is the marginal cost of product X , what should be the…

A: Markup price is charging a price(P) higher than the marginal cost(MC). The markup rule indicates the…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he…

A: Given: George sells T-shirts per month = 5,000 The selling cost for T-shirts is = $8.50 The price…

Q: Cecilia sells bangus for PHP 100.00 and her Qd1 =500. When she decides to sell it for PHP 12, her…

A: Price of Bangus, P1 = PHP 100 Quantity, Qd1 = 500 Total revenue, TR1 = Price × Quantity = 100 × 500…

Q: Suppose a local supermarket runs a discount campaign on the sales of shampoos using discount coupons…

A: Discount and offers usually occurs when demand of product seems lacking and interest of consumers…

Q: Revenue and Elasticity The price-demand equation for hamburgers at Yaster's Burgers is x+ 423 p =…

A: Given demand equation :- x + 423p = 2934 or  x = 2934 - 423p

Q: You would like to control the total consumption of soft drink up to 100 bottles per year. The…

A: Answer -

Q: Cikli is the manager of a firm that receives a revenue of RM3000 per month from product X and RM7000…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: Discuss "elasticity". Explain the importance of elasticity in revenue management.

A: The method that depicts the application of disciplined analytics predicting the behaviour of…

Q: Keep in mind the formula for elasticity of demand used in this course is E =- dp. Hint: Start off by…

A: The given demand function is: Elasticity shows the responsiveness of quantity demanded due to the…

Q: 1. Estimates of the marginal cost of Daraprim are S100 for a 100 pill bottle. If Turing charges…

A: Given: MC  = $100   P = $75,000  As we know, P- MCP = 1e

Q: Company A sells 100,000 bicycles each year at RM250 per bicycle. From past experience, the manager…

A: Given information, Price elasticity of demand: -0.8 Change in price: 20% (from RM250 to RM300)…

Q: The demand curve for a product is given Qd x = 1500 − 5Px − 0.2Pz by where Pz = $300. a. What is…

A: Answer: Given: The demand function for good x: Qdx=1500-5Px-0.2PzWhere Px is the price of good x and…

Q: The Saad Enterprises manufactures cameras, Speakers and sells on average 21300 units monthly at $…

A: Price elasticity of demand = Percentage change in quantity demanded / Percentage change in price

Q: Suppose that a new entry has decreased your demand elasticity from –2 to –3 (made demand more…

A: A good's price elasticity of denand is a proportion of how delicate the amount requested is to its…

Q: Greentech- a high technological pharmaceutical company, has developed a clot-dissolving drug called…

A: 1) When pricing their drugs , a pharmaceutical company first analyses the drugs's uniqueness ,…

Q: You sell two different goods: printers and toner cartridges. The price elasticity of demand for the…

A: The elasticity of demand measures the responsiveness of quantity demanded of a good to a change in…

Q: Suppose elasticity of demand for fuel in the Austria is -2.5 and -4.5 in the UK.  How much should…

A: Price elasticity of demand (PED) shows the percentage change in the quantity demand due to certain…

Q: Problem 4. The price is a function of demand given as p(q) = 2.5 In (300). Use the elasticity…

A: Given  Demand equation: p(q)=2.5ln300q                  .... (1) We have to find revenue-maximizing…

Q: A Premier League football club estimates that whilst the price elasticity of demand for its…

A: The price elasticity of first team = (-) 0.3 The price elasticity of second team = (-) 2.2

Q: The elasticity of demand for a firm's product is -2.5 and its advertising elasticity of demand is…

A: Price elasticity of Demand - It is used to measure the percent change in quantity for one percent…

Q: With the aid of diagram(s), illustrate the changes of elasticity along a linear demand curve and…

A:

Q: The demand curve for a product x is given by Qdx 1,000 2Px + 0.02PZ, %3D where Pz = $400. a) What is…

A: Elasticity is defined as the ratio of percentage(%) change in quantity(Q) to the percentage(%)…

Q: suppose the quantity of stocks purchase by jones family is110 pounds per year when price is $2.10…

A: Elasticity of demand can be calculated as follows:

Q: If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the…

A: P-MCP=1ε where P = Price            MC = Marginal cost            ε = Elasticity

Q: A firm estimates its price elasticity of demand for poutine to be -2 and its elasticity of demand…

A: Given  Own price elasticity is -2 Advertising elasticity =0.1

Q: You sell two different goods: printers and toner cartridges. The price elasticity of demand for the…

A: Price elasticity of demand measures the responsiveness in change in quantity demanded if a commodity…

Q: At $182, a firm can sell 19,310 stereo earphones (3.5 mm for android). These are premium earphones,…

A: Given information, Initial price: $182 Initial quantity demanded (sales): 19,310 Price elasticity…

Q: Suppose that the management of Sun City resort is trying to understand the income elasticity of…

A: Points given : At Average income = 3000  Q = 45000  At Average income = 5000  Q = 60,000

Q: 1. Social Distance Spa decrease the monthly charge from P1,500 to P1,000, and total revenue went…

A: When the price decrease from $1500 to $1000 then the Revenue decreases from $45000 to $40000.  We…