Bloomington's, Inc. is a retailer of distinctive clothing. At the end of the company's fiscal year, you have been asked to evaluate sales of traditional wool suits and classic blazers using the following data: 2.1 Calculate and interpret the average arc advertising elasticity of demand for suits. 2.2 Calculate and interpret the average arc cross-price elasticity of demand between suits and blazers. SuitNumber ofBlazerAdvertisingExpendituresSuitSuits Sold,Price,PriceMonthAPPBJulyAugustSeptemberOctoberNovember400$50,00050,00055,00055,00065,00065,00060,00060,00060,00063,00057,00057,000$700$3505006503507006503509006504501,000700450DecemberJanuaryFebruaryMarch600700350500800350700700350800650300AprilМay900600300700600300June500750300

While calculating arc advertising elasticity of demand, those consecutive months are to consider in…

Answered: Bloomington's, Inc. is a retailer of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bloomington's, Inc. is a retailer of distinctive clothing. At the end of the company's fiscal year, you have been asked to evaluate sales of traditional wool suits and classic blazers using the following data: 2.1 Calculate and interpret the average arc advertising elasticity of demand for suits. 2.2 Calculate and interpret the average arc cross-price elasticity of demand between suits and blazers.

Suit
Number of
Blazer
Advertising
Expenditures
Suit
Suits Sold,
Price,
Price
Month
A
P
PB
July
August
September
October
November
400
$50,000
50,000
55,000
55,000
65,000
65,000
60,000
60,000
60,000
63,000
57,000
57,000
$700
$350
500
650
350
700
650
350
900
650
450
1,000
700
450
December
January
February
March
600
700
350
500
800
350
700
700
350
800
650
300
April
Мay
900
600
300
700
600
300
June
500
750
300

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