Currently, the demand equation for necklaces is Q = 30 – 4P. The current price is $10 per necklace. Is this the best price to charge in order to maximize revenues?* If $10 per necklace is not the best price, what is?* Explanation: Solve for the best price to charge in order to maximize revenues. Show any steps or processes used to reach the answer above. Explain your process as though you are teaching the concept to a student who is a beginner in economics.*
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Currently, the demand equation for necklaces is Q = 30 – 4P. The current price is $10 per necklace. Is this the best price to charge in order to maximize revenues?*
If $10 per necklace is not the best price, what is?*
Explanation: Solve for the best price to charge in order to maximize revenues. Show any steps or processes used to reach the answer above. Explain your process as though you are teaching the concept to a student who is a beginner in economics.*
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- After talking your managerial economics class, you realize that you can probably raise your profits by price discriminating by charging different prices in the two locations. You then breakdown sales across the two locations In Laredo: You sold 200 burger meals per week at $9 and 100 meals at $10 In San Antonio: You sold 1200 meals per week at $9 and 1100 meals at $10 Using the two prices above, estimate your demand function in Laredo. What would demand be at the optimal price from Q1? Using the two prices above, estimate your demand function in San Antonio. What would demand be at the optimal price from Q1? Calculate the point price elasticity of demand at the optimal price for Q1 (and quantity from part A) in Laredo Calculate the point price elasticity of demand at the optimal price for Q1 (and quantity from part B) in San Antonio Assuming that your marginal costs are $3, are you charging more, less, or exactly the optimal price in Laredo Hint: Calculate the markup on price and…TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A price decrease tends to cause the opposite reaction. An increase in income will shift the demand curve to the left on the graph. A decrease in income will shift the demand curve to the right. Shifts in either the demand curve alone or the supply curve alone cannot cause a change in the equilibrium point. It is only when both the demand curve and supply curve shift that the equilibrium point is changed.The daily demand for movie rental from a movie theatre operator Silver Screen is given by the equation P = 5 - 0.5Q, where P is the price in dollar ($) and Q is the quantity demanded. The manager of Silver Screen claims that consumers are always sensitive to the price of movie rental and hence the company should always reduce the price to earn more revenues. Is this claim valid? What should the manager do to maximise the revenue? Explain.
- After talking your managerial economics class, you realize that you can probably raise your profits by price discriminating by charging different prices in the two locations. You then breakdown sales across the two locations In Laredo: You sold 200 burger meals per week at $9 and 100 meals at $10 In San Antonio: You sold 1200 meals per week at $9 and 1100 meals at $10 Using the two prices above, estimate your demand function in Laredo. What would demand be at the optimal price from Q1?A manufacturing business can supply 60 plasma TV sets per month at a price of $280 per set, or sell 140 plasma TV sets if the price is $370 per set. A group of retailers will buy 80 plasma TV’s if the price is $350 per pair and 120 plasma TV’s if the price is $300 per set. Given that the demand and supply functions must be linear: Find the linear equations representing both demand and supply Find the point of market equilibrium (number of TVs: q) and the price per unit (p) at that point.Harriet McNeil, proprietor of McNeil's Auto Mall, believes that it is good business for her automobile dealership to have more customers on the lot than can be served, as she believes this creates an impression that demand for the automobiles on her lot is high. However, she also understands that if there are far more customers on the lot than can be served by her salespeople, her dealership may lose sales to customers who become frustrated and leave without making a purchase. Ms. McNeil is primarily concerned about the staffing of salespeople on her lot on Saturday mornings (8:00 a.m. to noon), which are the busiest time of the week for McNeil's Auto Mall. On Saturday mornings, an average of 6.8 customers arrive per hour. The customers arrive randomly at a constant rate throughout the morning, and a salesperson spends an average of one hour with a customer. Ms. McNeil's experience has led her to conclude that if there are two more customers on her lot than can be served at any time…
- Mattel has conducted studies to determine the best price to set for their Barbie doll figures. Based on data received through these studies, it was calculated that Mattel could sell 3,000 Barbie dolls at a set price of $17.99. However, it was also determined that if the price per doll was reduced to $9.99, they could sell an additional 2,000 Barbie dolls. Find the linear demand equation (price function, y) as a function of the quantity, x, sold.Assuming Demand is downward sloping and Supply is upward sloping (as we usually do), what happens to equilibrium price (P) and quantity (Q) of a good when Supply decreases? Group of answer choices a. P and Q should not change b. P decreases; Q decreases c. P increases; Q decreases d. P increases; Q increases e. P decreases; Q increasesThe market for lemon has 10 potential consumers, each having an individual demand curve P=101-10Q1, where P is price in dollars per cup and Q1 is the number of cups demanded per week by the ith consumer. Find the market demand curve using algebra. Draw an individual demand curve and the market demand curve. What is the quantity demanded by each consumer and in the market as a whole when lemon is priced at P= $1/cup?
- In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Consumer expectations that the price of X will rise sharply in the future will Multiple Choice increase D, decrease P, and increase Q. increase S, increase P, and increase Q. decrease S, increase P, and increase Q. increase D, increase P, and increase Q.The market for organic and locally sourced foods has skyrocketed over the past decade as consumers focus on improving their eating habits. However, severe droughts have caused organic food prices to rise significantly, forcing many consumers to shop at conventional supermarkets (which are increasingly adding organic food options) instead of organic food markets such as Whole Foods. In response, companies such as Whole Foods have begun offering more nonorganic options on their store shelves in order to provide their consumers with more affordable options. Based on this response, what did companies such as Whole Foods realize about the elasticity of demand for organic foods that caused them to lower their prices by changing the type of foods they sell?What is wrong with this statement? Demand refers to the willingness of buyers to purchase different quantities of a good at different prices during a specific time period.