Suppose that the sold rises as price is reduced. If 2 units output are sold at a price of P80, and the quantity sold rises to 4 units per month when the prices is reduced to P50.
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- The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?Consider the demand function for bicycles in South Florida: Q = 24 + 3Y – 1.2P where: Q is quantity demanded, Y is monthly income, and P is the price per unit. If/when P = $54, and Y = $2,300, (a) Find the quantity of bicycles that would be sold. (b) Calculate the amount of the seller's total revenue. (c) Compute the price-elasticity of demand (Ep) for bicycles. (d) Interpret your result in (c). (e) Compute the income-elasticity of demand (Ey) for bicycles. (f) Interpret your result in (e).Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.
- On the following graph, plot Tim’s demand for pizza slices using the green points (triangle symbol). Next, plot Alyssa’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A golf club has determined that its local community has two broad groups of consumers: casual golfers and serious golfers. The golf club plans to charge golfers both a monthly membership fee (F) and a price (P) for each round of golf played. The club has estimated the following details for each consumer group, where P represents the price per round of golf and Q represents the number of rounds played each month. There are 25 serious golfers and each serious golfer has a direct demand of Qs(Ps)=190−2Ps. There are 60 casual golfers and each casual golfer has a direct demand of Qc(Pc)=152−2Pc. The marginal cost associated with each round is equal to $20.Ignore fixed costs. Assume that this golf club cannot price discriminate and must charge one price (P) and one membership fee (F). We will now determine whether it is more profitable for the golf club to select its prices based on the preferences of casual golfers or on the preferences of serious golfers. For the next two parts,…A golf club has determined that its local community has two broad groups of consumers: casual golfers and serious golfers. The golf club plans to charge golfers both a monthly membership fee (F) and a price (P) for each round of golf played. The club has estimated the following details for each consumer group, where P represents the price per round of golf and Q represents the number of rounds played each month. There are 25 serious golfers and each serious golfer has a direct demand of Qs(Ps)=190−2Ps. There are 60 casual golfers and each casual golfer has a direct demand of Qc(Pc)=152−2Pc. The marginal cost associated with each round is equal to $20.Ignore fixed costs. Assume that this golf club cannot price discriminate and must charge one price (P) and one membership fee (F). We will now determine whether it is more profitable for the golf club to select its prices based on the preferences of casual golfers or on the preferences of serious golfers. For the next two parts,…
- Taj Hotels, Infosys) Can you think of an example from the firm chosen that reflects the application of price elasticity in revenue decisions? JustifyEnergy markets, such as the market for natural gas and electricity, have been known to be characterized by inelastic demand. However, recent research discussed in the August 25, 2022 issue of The Economist, indicates that while the responsiveness of quantity demanded in response to price changes indeed is “inelastic” (i.e., the absolute value of price elasticity of demand is still less than 1), the percentage change in quantity demanded in response to a change in price is much larger than earlier research indicated. Answer these narrative questions. No graphs are needed. What does “inelastic demand” formally mean? In addressing this part of the question, please make sure to explain the concept of the price elasticity of demand using a simple formula and by providing a short narrative. Policymakers are encouraging people to conserve energy in response to the growing energy crisis. Discuss the positives (pros) and negatives (cons) of providing subsidies to consumers in this situation…P Q $156.00 9344 $151.32 10040 $146.64 10544 $141.96 11047 $137.28 11483 $127.92 11691 $123.24 11753 A. Use your first demand function to determine an equation for TR and MR as a function of Q, and create a graph of P and MR on the vertical and Q on the horizontal axis. B. What is the total-revenue maximizing price and quantity, and how much revenue is earned there? (Round your price to the nearest cent, your quantity to the nearest whole unit, and your TR to the nearest dollar.) Compare that to the TR when P= $127.92 and P= $149.00
- Nickey and Aididas produce trainers in the sports-shoe market. For one of their main products they have the following demand curves: Nickey : Pn = 175 – 1.2Qn Aididas = Pa = 125 – 0.8Qa where P is in Pesos and Q is in pairs per week. Questions: The firms are currently selling 80 and 75 pairs of their products per week respectively. 1. What are the current price elasticities for the products? 2. Assume that Nickey reduces its price and increases its sales to 90 pairs and that this also causes a fall in Aididas’s sales to 70 pairs per week. What is the cross-elasticity between the two products? 3. Is the above price reduction by Nickey to be recommended? Explain your answer.Only typed answer Uver is a new car ride service in town. The market demand function for Uver rides is estimated to be q = 148 × p −31u, where pu is the price of an Uver ride. Part 1. The absolute value of the price elasticity of demand for Uver rides is ________. Part 2 This demand function is a) always elastic b) always inelastic c) always unit elastic d) elastic at high prices, inelastic at low prices, and unit elastic at one point.Please answer this question asap I will rate you for sure. Answer must be in typed format Suppose that as the price of Y falls from $3.00 to $2.80, the quantity of Y demanded increases from 200 to 210 . Then the absolute value of the price elasticity (using the midpoint formula ) is approximately.