Price of a cigarette pack is 6 and quantity sold is 1000 in March .Price was raised by 25% in April and and price elasticity was 0.8 What is the strategy that can be abopt by the firm to maintain sales
Q: If the price elasticity of demand for a product is 1.5, then a price cut from $3.00 to $2.70 will…
A: Introduction: Price elasticity of demand: The price elasticity of demand is a measure of how a…
Q: Suppose that you know that the price elasticity of demand is 1.3. If we increase the price of this…
A: A good's price elasticity of demand is a calculation of how sensitive the quantity demanded is to…
Q: If a firm finds that it can sell $32,000 worth of a product when its price is $8 per unit and…
A: The Sell increased as the price increased so the demand is inelastic between $8 and $10.A inelastic…
Q: Transatlantic air travel in business class has an estimated elasticity of demand of 0.40 less than…
A: Price elasticity of demand is defined as the responsiveness of the quantity demanded of a commodity…
Q: The price elasticity of supply measures the response of sellers to change in the price of a product.…
A: The responsiveness of a good or service's supply to a change in its market price is measured by…
Q: A Restaurant manager decides to lower the price of a featured sandwich from Rs. 500 to Rs. 400, and…
A: Elasticity: It is used for measuring the change in the behavior of buyers and sellers due to a…
Q: When the demand curve of colgate is vertical therefore the elasticity of colgate is said to be…
A: Answer: c. perfectly inelastic When a demand curve is vertical it means its elasticity is zero and…
Q: Blossom, Inc., sells 900 bottles of perfume a month when the price is $10. A huge increase in…
A: The formula is:Elasticity of demand=(change in quantity/average quantity)/(change in price/average…
Q: The Hevishus Corp. (HC) is a profit-maximizing company that owns the only cement factory in…
A: 1)In Portland,price would be charged higher because it is more elastic demand than Charlestone.
Q: 18- Important medicines whose demand slightly changes only even if there is a change in price have…
A: The response of demand of a product to changes in the price of the product is measured by the price…
Q: The price elasticity of demand for chicken is calculated as 1.53. What category of price elasticity…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: True or False: Elasticity is measured as the unit change in quantity divided by the dollar change…
A: Elasticity: - Elasticity measures the responsiveness of change in one variable due to a change in…
Q: Price P2 A P1 B Demand Q2 Q1 Quantity 8. If rectangle D is larger than rectangle A, then a) demand…
A: The demand is elastic as the percentage change in quantity id=s greater than the percentage change…
Q: An experiment is conducted that provides the data in the accompanying table. Toll…
A: Price elasticity of demand is a measure of sensitiveness of quantity demanded if there is a change…
Q: our company charges $60 for a board game it invented and has sold 3,000 copies during the last year.…
A: Following are the given values: Price charged by the company = $60 Number of copies sold = 3000…
Q: The initial price for an item is $5.00, and the quantity demanded is 400 units. When the pric is…
A: Answer: Given,Initial quantity=Q1=400 unitsNew quantity=Q2=350 unitsInitial price=P1=$5New…
Q: For a normal negatively sloped demand curve, starting from the lowest price and going toward the…
A: Answer: Correct option: option 2 Explanation: For a negatively sloped demand curve, starting from…
Q: Aluminum can be used to produce cable (buyers have elastic demand) or to make aircraft (inelastic…
A: In order to prevent re-sales, the firm should integrate with vertical industries which have higher…
Q: Suppose that as the price of Y falls from $12 to $10, the quantity of Y demanded increases from 500…
A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…
Q: Write TRUE if the statement is right and FALSE if it is wrong. _____ 1. Disequilibrium means…
A: The demand shows the relationship between the quantity demanded and the price level. The demand is…
Q: The population of Greensboro is approximately 300,000. Suppose the average individual has demand for…
A: Given QD=38−1.15P Individual elasticity of demand Price = $3…
Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:
A: Price elasticity of demand refers that the change in demand due to change in price so here we…
Q: The demand for a product is inelastic with respect to price if: consumers are largely…
A: Demand is the willingness of consumers for consuming goods and services at different price levels.…
Q: Calculating elasticity Draw a set of coordinate axes on a piece of graph paper. Label the…
A: Variables' elasticities are defined as the degree to which they are sensitive to changes in other…
Q: If demand is ________ with respect to price, a price increase will ________ total revenue. unit…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation under…
Q: When price is $5, 20 units of a good are sold. When price is $9, 10 units are sold. Calculate the…
A:
Q: A microchip company is looking at new product lines and is reviewing the findings of its marketing…
A: Price elasticity of demand (E(p) ) is the tool utilized by the companies to determine the…
Q: rom 1000
A: Point elasticity is defined as the price elasticity of demand which is being at a specific point…
Q: Joe initially charged $180 for a electronic product and averaged 20 clients per week. When he raised…
A: The demand for goods decreases with an increase in price. of a good. The demand curve is negatively…
Q: With regard to elasticities of demand: Group of answer choices: A) price elasticity should actually…
A: Total revenue refers to the price of the good times the quantity sold. The elasticity of demand…
Q: We find that the elasticity of demand for Honolulu Red Oranges is 2.3 when the price is $32 per…
A: Elasticity of demand is the sensitivity or responsiveness of quantity demanded in relation to change…
Q: A college in California raises its annual tuition from $2500 to $3500; while enrollment falls from…
A: price elasticity of demand means change in demand due to change in price , so here we find the type…
Q: The Energizer Bunny that “keeps going and going” has been a very successful ad campaign for that…
A:
Q: Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John…
A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…
Q: TRUE OR FALSE *If change in quantities demanded and supplied is greater than the change in price,…
A: We are supposed to do the first question please send rest of the questions again to get the answer.…
Q: the price of a product increases from R5 to R7 and the quantitality demanded decreases from 3000 to…
A: Elasticity measures the responsiveness of quantity demanded to change in price. It is the ratio of…
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 a firm in a competitive market doubles its number of units sold, total revenue for the fim will…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The price elasticity of demand for a textbook sold in the United States is estimated to be -2,…
A: The price elasticity of demand measures the responsiveness in the quantity demanded of a commodity…
Q: If demand is ___, then a given % rise in price will cause a smaller % fall in quantity demanded so…
A: Elasticity of demand states that the responsiveness change in quantity demanded to the change in…
Q: The demand function for Z products sold by the Company Directly Is as follows in the figure with p…
A: Given Equation of demand function for Z product p=q2-100q+3200 ... (1)
Q: If quantity demanded of a product changed from 100 to 120 units due to change in price from P10 to…
A: In the market, if there is a negative value of price elasticity of demand, the product will be…
Q: If the price elasticity of demand for a product is 1.5, then a price cut from $3.00 to $2.70 will…
A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…
Q: 4.1) If the price of a gardenburger increases from RM8 to RM10, the price elasticity of demand…
A: Since you have posted a question with multiple parts, we will solve only the first part. To get…
Q: The greater the price elasticity of demand the More likely the product is a necessity…
A: Price elasticity of demand is ratio of percentage change in quantity demanded and percentage change…
What is the strategy that can be abopt by the firm to maintain sales
Step by step
Solved in 2 steps
- Describe the general appearance of a demand or a supply tune with zero elasticity.Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while transatlantic air travel in economy class has an estimated price elasticity of 0.12. Why do you think this is the case?the demand elasticity of the cement is 2. Initial price of the cement is $1000 per ton and 100 tond were sold. What happens with the total revenues when the price increases?
- The firm’s vice president in charge of marketing believes that every 8% decrease in the selling price of one of the company's products would lead to a 26% increase in the product's total unit sales. The product's absorption costing unit product cost is ₱18.20. The variable production cost is ₱1.90 per unit and the variable selling and administrative cost is ₱2.30 per unit. The product's price elasticity of demand is closest to: a. -2.82 b. -4.41 c. -2.00 d. -1.79 The product's profit-maximizing price is closest to: a. ₱33.77 b. ₱3.60 c. ₱2.97 d. ₱6.57Worldwide annual sales of smartphones over a two year period were approximately q=-4p+3020 million phones at a selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ (c) The demand was going down by about _____% per 1% increase in the price at that price level. (d) use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $____ What would’ve been the resulting annual revenue? $____ billionGerald makes a new brand of shoes that has a unit cost of $75.95 per shoe and a price elasticity of 4.70. What is the contribution - maximizing price for Gerald's shoes? Selected Answer: 62.66 Correct Answer: 96.48 \pm 0.2 i did the formula you recommended, but doesnt eqal the 96.48 as indicated ascorrect asnwer
- If the price elasticity of demnd for milk is -0.80, a 16% increase in sales implies a reduction price by ......?Worldwide annual sales of smartphones over two year period were approximately q=-5p+3040 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E=_______ (b) in one of the years the actual selling price was $375 per phone. What was the corresponding price elasticity of demand? E=_______ The demand was going down by about _____% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $_______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places) $_____billionTrue or false. Midpoint elasticity is greater than 1.
- The company recently changed the selling price of one of its products from ₱70.00 to ₱67.00. The unit sales changed from 1,800 to 1,930. The product's price elasticity of demand is closest to: a. -1.99 b. -1.59 c. -1.54 d. -1.53A firm is selling two versions of a product: for one demand is estimated to be Qa=1400-20Pa and for the other demand is estimated to be Qb=1250-25Pb. Determine the point price elasticity for each product if Pa=$40 and Pb=$30.John a retailer of coca-cola products, purchase 20 cases good for 3 days. Each case contains 24 bottles and he sold at 12.00 each bottle. After delivery 4 cases of coca-cola products was damage and no replacement of damages after delivery. At this time he decided to mark-up his price at 10% of the original price and made additional purchase of 37.5% of the remaining delivered coca cola products as replacement of the damages. Is the Demand for coca cola, Elastic, Inelastic or unitary Elastic? At what price will john earned a bigger revenue? Solve the following: a. Change in Qd b. Change in Price c. Price Elasticity of Demand
