Suppose the elasticity of demand for the parking lot spaces at Hakdog Company is -2 and price is 160 per day. If the MC is zero and the parking lot is 75% full at 10 a.m. over the last month, are they optimizing? Justify your answer.  Show solution

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A: Price elasticity refers to the responsiveness of the quantity demand due to change in price. If the…

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A: Below is the types of price elasticity of demand: 1. Elastic Demand 2. Inelastic Demand 3. Unitary…

Q: over the last month, are they optimizing? Justify your answer.  Show solution.

A: Given : Elasticity of demand=-2 Price per day=160 MC=0 Parking lot capacity=75%

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A: For-Profit Maximization MR = MCas MC = 0, but MR is not, it is not optimizingMR=0 at full occupancy

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Q: Suppose the elasticity of demand for the parking lot spaces at SM Downtown is -2 and price is 160…

A: The price elasticity of demand measures the responsiveness of quantity demanded to a change in…

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A: We will use the relationship between Price, Marginal Cost and elasticity of demand

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A: The answer is as follows:-

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A:

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Q: For which goods or services will the demand be relatively more or relatively less elastic?  Explain…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

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A: Elasticity of demand depicts how much consumer responds with the change in price level.

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Q: Price

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