Which of the following figures is most likely to represent the cross-price elestioly of dernand of FiereOne internet services to Starlink intemet services. a) -3 b) 0 c) 2.5 d)⋅0.55
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Please no written by hand solutions
Question 19 Which of the following figures is most likely to represent the cross-
a) -3
b) 0
c) 2.5
d)⋅0.55
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Solved in 4 steps
- The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager, you noted that the price elasticity of demand was 0.8. As a manager of Big Tobacco Co Ltd: Advise your management of the strategy that could be adopted by your firm to maintain sales. Also, advise your government on recommended interventions in the cigarette market.The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltddecided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: A. Advise your management of the strategy that could be adopted by your firm to maintain sales. B. Also, advise your government on recommendedinterventions in the cigarette market.The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales.
- he price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales. Also, advise your government on recommended interventions in the cigarette market.The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: As a manager Big Tobacco Co Ltd store advise your management of the strategy that could be adopted by your firm to maintain salesEngro Foods (Pvt) Ltd. is a FMCG manufacturer in Pakistan. Its main products are milk, icecream, and flavored juices. Last year the company has sold around 8 million units of milk, 5million units of ice-cream and 3 million units of flavored juices. The average current marketprice of the milk is Rs.100; the ice-cream is 60; and the Juices is Rs.40.In an attempt to improve revenue, the managers of the company have decided to increase allprices by 5%. Market research has suggested that the price elasticity of demand for eachproduct is: Milk: (-) 1.5; Ice-cream: (-) 1.0; Flavored juices: (-) 0.5You are required to calculate, evaluate and suggest the planned price change on followingsituations.a. Would a 5% price increase have been better for some or all of the products?b. Would a 5% price reduction have been better for some or all of the products?c. Should the company retain their current market price? If yes then why? If not thenwhy not?d. How Engro Foods (Pvt) Ltd. can maximize their…
- You are hired as a consultant at a revenue management firm and one of ourrecent clients wished to determine the optimum price for their consumer electronics product.The cost of the product is $100 and before retaining us, they had been selling the product at$200 because it felt like a nice round number. The current sales volume is 1000 units peryear. We examined the market preferences and buying behavior, and concluded that thiscompany’s marketplace has a price elasticity of 1 (i.e. Assume that an x% change in pricewill result in an x% change in sales volume for any x). What is the optimal price thatmaximizes total profit for this company? What are the sales volume, total revenue and totalprofit at the optimal price?please answer first four subpartsA company has determined that there are seven possible defects for one of its product lines. Construct a Pareto diagram for the following defect frequencies:Defect Code FrequencyA 10B 70C 15D 90E 8F 4G 3
- Formulate the demand equations and estimate Qd for P=33 by using the following data: Price level Quantity Demand 38 200 36 500 34 800 32 900 30 1000 28 1400Johnny's company provides a on-call service to provide garden maintenance / tidying services in several residential areas at a regular price of $ 400, covering maintenance / trimming and spraying of fertilizers and chemical pests. In an effort to attract new customers, the company offered its customers a $ 80 discount off the regular price. It turned out that this decision was greeted enthusiastically and customers increased to 5,500 units (packages) from 3500 units recorded in the same period last year. Question: a. Compute: Arc price elasticity of demand for service company “ABC”. b. It is assumed that the Arc price elasticity in item a is the best available estimate of the Point price elasticity of demand. If the marginal cost is $ 150 per unit for labor and materials. Compute: Optimal mark-up on price, and Optimal price for Johnny's company services.The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand function in the linear form: Q = f (P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below: DEPENDENT VARIABLE Qc R- SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 64 0.8093 84.872 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54…