Output (Units) PRICE Total Revenue 1 50 2 45 3 40 4 35 5 30 Q1. The law of demand apply in the values of table. Fill the table with the help of given information.
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|
Output (Units) |
PRICE |
Total Revenue |
|
1 |
50 |
|
|
2 |
45 |
|
|
3 |
40 |
|
|
4 |
35 |
|
|
5 |
30 |
|
Q1. The
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- the following data represents a set do demands that have occurred over the last several years at a soap making company. The data were collected on an annual basis. Year Actual Demand (At) Forecast (Ft) 1 310 2 365 3 395 4 415 5 450 6 465 7 a) using the SIMPLE AVERAGE method to predict the demand for the 7th year b) the SIMPLE MOVING AVERAGE method to predict the demand for the 7th year11 ______ is the total quantity of goods and services that will be purchased at all possible price levels. a. Demand b. Aggregate supply c. Supply d. Aggregate demandYou are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.
- 1. Economic profit is defined as the difference between revenue and ____. explicit cost total economic cost implicit cost shareholder wealth 2. In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return. Profits (cash flows) Revenues Outlays Costs Investments 3. The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn? Saturn's cars sold at prices higher than rivals Honda or Toyota, so they could not sell many cars. Saturn sold cars below the prices of Honda or Toyota, earning a low 3% rate of return. Saturn found that young buyers of Saturn automobiles were very loyal to Saturn and GM. Saturn implemented a change management view that helped make first time Saturn purchasers trade up to Buick or Cadillac. 4. The flat-screen plasma TVs are selling extremely…You are an analyst. Your friend started a new business of selling masks. She knows that you have adequate knowledge of economics and business, and hence, asked for your help in making some important business decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found PED in February was 1.8 (absolute value), and PED of Masks in April was 0.7 (absolute value). (a) What type of good mask is in the month of April in terms of elasticity? (b) The market price of the mask in June was 10 taka per unit and revenue earned in June was 150 taka. How many masks were sold in June? (c) In 2(b), you found the quantity demanded masks in June. You received the data for August and observed that the price in August was 25 per unit and the quantity demanded of masks in August is 7. Calculate the Price Elasticity of Demand (PED) for masks from June to August.6. Best Buy sells Q units of áat-screen TVs each year. Best Buy executives also know that the price elasticity of demand for áat-screen TVs is eQ;P = 1:5. They propose a 20% reduction in the price of áat-screen TVs claiming that total revenue (a) will increase by 15%. (b) will increase by 30%. (c) will increase by 3:5%. (d) will decrease by 30%. (e) will increas
- RCO Manufacturing is an electronics manufacturer and retailer. Its main products are ultrabook computers, PCs and calculators. The current price of the ultrabook is £500, the PC is £800 and the calculator is £40. This year the firm sold 10,000 ultrabooks, 20,000 PCs and 1 million calculators. In an attempt to improve revenue the managers of the firm have decided to increase all prices by 10%. Market research has suggested that the price elasticity of demand for each product is: Ultrabook: (-) 1.5; PC : (-) 2.5; calculator: (-) 0.6 You have been asked to evaluate the planned price increases. Comment on the planned price changes. Would a 10% price reduction have been better for some or all of the products? What benefit (if any) would advertising bring to the firm? (You should support any arguments with calculations.)09. Which of the following statements is False? a) Supply is a relationship between price and quantity. b) Demand represents the willingness and ability of buyers to buy quantities of a good at various prices. c) The demand relationship represents the specific quantity of a good demanders have bought. d) All of the above e) None of the aboveSuppose there is a product whose price is increasing but it has no impact on quantity demand (increase ordecrease). Draw the graph of this quantity demand.
- more than what they have expected. In Philippines alone they were able to generate sale of ticket at 5,210 at a price of 170 pesos. However, the movie was able to raise its ticket sales to 6,000 pesos when it lowered the price to 150 pesos, in anticipation to increase more their profit margin. Calculate ticket revenues at each price level Did the pricing promotion increase or decrease ticket revenues? Estimate the ticket linear demand curve How should ticket prices be set to maximize total ticket revenue?The main determinant of the behavior of people in which the law of demand applies is the ______________ of the commodity being demanded. real income nominal income price all of the aboveExplain the following demand determinants: (1) Income (2) Price of related goods and services (3) Taste or preferences of consumers (4) Size of Population (5) Expected Price of the Product in the future periods
