For Washburn, what are examples of (a) shifting the demand curve to the right to get a higher price for a guitar line (movement of the demand curve) and (b) pricing decisions involving moving along a demand curve?
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For Washburn, what are examples of (a) shifting
the
for a guitar line (movement of the demand curve)
and (b)
demand curve?
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- Suppose you are the managing director of a firm that produces two goods: A and B. The priceelasticity of demand for good A is 0.75 and for good B it is 2.5. The firm is experiencing seriouscash flow problems and you have to increase total revenue as soon as possible. If you were ina position to set the price for these two goods, what would be your pricing strategy for eachproduct?For Washburn, what are examples of (a) shifting the demand curve to the right to get a h igher price for a guitar line (movement of the demand curve) and ( b) pricing decisions involving moving along a demand curve?(2) In a fictitious town of Fruitlandia, 4 individuals each buy apricots following their individualdemands P = 6 – Q and 1 individual buys following individual demand P = 11 – Q, where Pdenotes the price and Q denotes the quantity. For the price range between $0 to $6, the town’saggregate demand is given by(a) P = 35 – 5Q(b) P = 17 – 2Q(c) P = (17/2) – (Q/2)(d) P = 7 – (Q/5)(e) None of the above
- If donuts and coffees are complimentary goods, how would "Star Hollow Coffee" sales be impacted by a 30 per cent discount on donuts O a. a rightward shift of demand curve leading to an increase in sales of coffee O b. a rightward shift of demand curve of donuts leading to an increase in sales C.no change O d. a leftward shift of demand curve leading to an increase in sales of coffeeAFTER READING THE PARAGRAPH ANSWER THE QUESTION : On Wednesday April 8, Starbucks announced that itexpects its fiscal second-quarter earnings to be cutnearly in half as the coronavirus pandemic causessales to plunge in its two largest markets. What wouldbe the right pricing strategy to maximize revenues forStarbucks in the current circumstances? In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with…No written by hand solution Suppose that the market for video games is competitive with demand function Qd = 170 – 4p + 2Y + 3pm – 2pc, where Qd is the quantity demanded, p is the market price, Y is the monthly budget that an average consumer has available for entertainment, pm is the average price of a movie, and pc is the price of a controller that is required to play these games. Given that Y = $100, pm = $30 and pc = $30, use Excel to calculate quantity demanded for p = $10 to p = $80 in $5 increments. Using Excel’s spreadsheet Find Qd = ________ when P=$30. Find Qd = ________ when P=$45. Now, Y increases to $120. Re-calculate the demand schedule and find Qd = ________ when P=$20. Let Y = $100 again, but pm increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$25. Let Y = $100, pm = $30, and pc increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$50.
- Answer within 45min please Suppose that Andrew’s Hotel will be open for only two days: a peak season day and anoff-peak day. Andrew has two types of costs: room construction costs and guest service costs. Thecost of servicing any guest is 50 dollars. The cost of building a room is 400 dollars, but rooms canbe used for both types of day. Inverse demand for peak days is P = 1000 −Q, and demand foroff-peak is P = 500 −2Q.What prices should Andrew, who is looking to maximize his profits, set, and how many roomsshould he build?Using the supply and demand equations given below: Demand Qd = 25 – 2PSupply Qs = 1 + P If the price falls from $8 to $7:a. Compute for the own price arc elasticity of demand. Provide an economic interpretationof your computed value (this is different from what is asked next) and classify the good according tothe type of elasticity. b. Compute for the price elasticity of supply. Provide an economic interpretation of yourcomputed value and classify the good according to the type of elasticity. 1. What is the relationship between total revenue and own-price elasticity of demand? 2. Illustrate a situation when the producer of a good will have a greater tax incidence than a consumer.What does elasticity have to do with tax incidence?Explain how the demand curves for normal productsand to, prestige products differ. What are demandshifts and why are they important to marketetS? Howdo firms go about estimating demand? How can marketetS estimate the elasticity of demand?
- In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from $21 to $15. The company expected the price cut to boost the quantity of CDs sold by 30 percent, other things remaining the same. What was Universal Music’s estimate of the price elasticity of demand for CDs? If you were making the pricing decision at Universal Music, what would be your pricing decision? Explain your decision.Typed and correct answer please. I ll rateLa offers 100 autograph bats. If each is priced at p dollars, it is that the deman curve for the bats will be p = 250 - q/4. If p elasticity is E(p) = dq/ q divided by dp/p. When E(p) < 1, demand is inelastic and when E(p) > 1, demand is elastic. i. Find theprice elasticity of demand for Lara's bat ii. is deamnd inelastic or elasticSuppose that managers at Honda are deciding how to price the new Honda Accord. The managers estimate that their total costs increase by $20,000 for each car they produce. They also estimate the demand curve they face; it is described by the equation: Q = -0.4 P + 16,000, where Q represents the quantity of Honda Accords they will sell and P represents the price they charge in US dollars. We can re-write that demand curve as: P = 40,000 - 2.5 Q. Take every possibly quantity that the managers might choose between 0 and 7,000 in units of 100. For each possible quantity, calculate the associated price the managers would need to charge, the revenue they would earn, and the total costs. You can then calculate profits for each level of quantity. Highlight the cell that contains the highest value of profit.