The demand for a product can be approximated by q = D(p) = 90e-0.01P, where p represents the price of the product, in dollars, and q %3D is the quantity demanded. (a) Find the elasticity function: E(p) = (b) Evaluate the elasticity at 6. E(6) = (c) Should the unit price be raised slightly from 6 in order to increase revenue? ? (d) Use the elasticity of demand to find the price p which maximizes revenue for this product. p = Round to three decimal places as needed.
Q: A firm is selling two versions of a product: for one demand is estimated to be Qa=1400-20Pa and for…
A: Point elasticity of demand is defined as at any point on the demand curve it is the per cent change…
Q: True or false. Midpoint elasticity is greater than 1.
A: The ed is calculated as % change in Qd to % change in P. The ed can be calculated by different…
Q: DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENT VARIABLE…
A: Price elasticity of demand is the responsiveness of change in quantity demanded when price changes.…
Q: An exporter of handbags has just entered a new market. This exporter faces the following…
A:
Q: The formula to calculate elasticity using the arc method is given below:…
A: The formula to calculate elasticity using the arc method: E = (Q2-Q1)/(Q2+Q1)(P2-P1)/(P2+P1) so we…
Q: If the price elasticity of demnd for milk is -0.80, a 16% increase in sales implies a reduction…
A: Ed or price elasticity= % Change in quantity/% change in price (-)0.8= 16%/% change in price %…
Q: The price elasticity of demand for a textbook sold in the United States is estimated to be -2,…
A: A firm can maximize its profit at the point where the marginal revenue (MR) is equal to marginal…
Q: The demand function is Qdx = 10- %3D 2Px+2Py+2l+4N where Py=10, 1=150 and N=100. What is the highest…
A: In a competitive market, there exists a large number of buyers and sellers of the good in the market…
Q: The demand function for a particular commodity is y 15e -x/3 for 0sxs8 where y is the price per unit…
A: Answer:
Q: The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the…
A: The elasticity of demand measures the responsiveness of quantity demanded of a good or a service to…
Q: The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the…
A: Ed = (∆Q/∆P) * (P/Q) Elasticity (Ed) = % Decrease in quantity demanded / % Increase in price As the…
Q: 23.The base price for a product is $100 and the variable cost is $60. The quantity that was sold is…
A: ANSWER we are given that base price is $100 and the variable cost is $60, let's assume that fixed…
Q: A medium sized scale company manufactures a certain product with an estimated variable costs, per…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The demand function for a particular commodity is y 15e -x/3 for Osxs8 where y is the price per unit…
A: As given Demand function is Y = 15e-x/3 where X is quantity and y is price also 0<=X <=8.
Q: If the the market price of price of a kilogram of coffee changed changed from $1.06 to $1.16, and…
A: Price elasticity of supply=percent change in quantity supplied/percent change in price Percent…
Q: The equation of an estimated demand function is as follows: - QdA (Quantity demand for A) = 200.5 -…
A: Given QdA= 200.5-2.5PA -1.5PB+3.5 I ...... (1) Where Price of A = Pa and Pb is the price of B…
Q: Qd = 25000 – 2P Qs =10000 + 1P Calculate price elasticity of demand using point elasticity method…
A: Price elasticity of demand is the measure of the percentage change in the quantity demanded of a…
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: The firm’s vice president in charge of marketing believes that every 8% decrease in the selling…
A: Decrease in price = -8% Increase in quantity = 26% Elasticity of demand = % change in Qty.% change…
Q: 06. If demand for this product changed from D1 to D2 as a result of a change in consumer income from…
A: Income elasticity of demand = %age change in demand / %age change in income
Q: the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month…
A: According to the trend, the demand is inelastic when the elasticity coefficient is less than 1. If…
Q: Pz-12 B A P;=10 Drlat Dsteep Q3=50 Qz=90 Qi=100 Consider demand curve DFlat When the price is raised…
A: The law of demand refers to the inverse or negative relationship between the quantity demanded of a…
Q: The demand function for a manufacturer's product is D = 80 - 3p, where D is the number of units and…
A: Total revenue is defined as the average sales price times the number of units sold.
Q: The demand function for a product is modeled by p = 400 − 2x, 0 ≤ x ≤ 200, where p is the price…
A: Elasticity refers to the percentage change in quantity demanded with respect to percentage change in…
Q: Johnny's company provides a on-call service to provide garden maintenance / tidying services in…
A: Price elasticity of demand is the percentage change in quantity demanded to the percentage change in…
Q: If the demand function at a time of year is D (p) = -4p %3D + 500, where 0 <p s 125, p = 50. Find…
A: Elasticity of Demand =dqdp×pq
Q: The demand function for a manufacturer's product is D = 70-5p , where D is the number of units and…
A: Revenue maximisation is a strategic goal of a company that aims to offer at a rate that maximizes…
Q: The demand function for a product marketed by a company is p = (80-D) / 4, where Dis the number of…
A: Answer- Need to find- Value of for which revenue is max. Given in the question- P = (80-D)/4 4P +D =…
Q: 3. The unit cost in peso to produce a chemically formulated product is $13 and the fixed cost is…
A: The profit is maximized where the MR=MC. The revenue is maximized where the MR = 0.
Q: The management believes that every 5% increase in the selling price of one of the company's products…
A: Formula to calculate price elasticity of demand:- Price elasticity of demand=Percentage change in…
Q: The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the…
A: Demand: It refers to the people's goods and services for their satisfaction. When the income of the…
Q: Suppose that the price of a good changes from 10 dollars to 20 dollars while the quantity demanded…
A: The markets are the place where the buyers and sellers of various commodities tend to meet and…
Q: The midpoint method is used to compute elasticity because it
A: Midpoint method is one of the method used to find out the elasticity.
Q: he price elasticity of demand for soft drinks is -1.6. SK Jaleel sells 500,000 cases of 250ml soft…
A: % change in Quantity of Good SK Jaleel = 20%% change in Price of Sollo = 5% Cross Elasticity of…
Q: The demand function for a manufacturer's product is D = 70-5p, where D is the number of units and…
A: The demand refers to the total units of a particular good that consumers are able and willing to…
Q: The demand function for FreshFood Exclusive Brand's product is D = 80 - 2p , where D is the number…
A: Demand function D = 80 -2p => p = (80 -D)/2 => p = 40 - 0.5D ------------------ Total revenue…
Q: jacket particular jacket estimated that the Average Demand will be 5000 units. If the jacket does…
A:
Q: Worldwide annual sales of smartphones over a two year period were approximately q=-4p+3020 million…
A: Demand Refers to the quantity that a consumer wishes to purchase at a given price in a given period…
Q: A single producer company surveyed the elasticity data of its product X. The results indicated that:…
A: For product X : Income Elasticity : +0.8 (Percentage change in demand w.r.t percentage change in…
Q: Identify i) the price elasticity of demand relationship between petrol and dieselpowered vehicles,…
A: The cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of…
Q: when a product price is $12 , quantity demanded is equal to 950; when the price is reduced to $8 ,…
A: Given information: Initial price: $12 Final price: $8 Initial quantity demanded: 950 Final quantity…
Q: The company recently changed the selling price of one of its products from P50.00 to P45.00. The…
A: Given data: Price of product changes from P50 to P45 The unit sales changes from 2000 to 2350 Tax…
Q: You are hired as a consultant at a revenue management firm and one of our recent clients wished to…
A: The optimal price for the firm is where its profits are maximized. The profits are maximized where…
Q: The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the…
A: Ed = (∆Q/∆P) * (P/Q) Given: Ed = -0.8 Q1 = 1000 P1 = 6 per packet P2 = (6*125)/100 = 7.5 per packet…
Q: Tutorial Exercise Worldwide annual sales of smartphones in over a 5 year period were projected to be…
A:
Q: For April 2021, the actual price (revenue per ASM) was 13.90. The cost per ASM for Southwest…
A: GivenPrice=P=13.90Cost per ASM=MC=12.39
Q: The elasticity of transit demand with respect to price has been found to be equal to -2.75. which…
A: Given, the elasticity of transit demand with respect to price is -2.75.
Q: The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the…
A: The basic concept of the law of demand is price elasticity of demand (PED). It's an economic metric…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- The demand function for a Christmas music CD is given by q = 0.75(2500 – p²) where a (measured in units of á hundred) is the quantity demanded per week and p is the unit price in dollars. (a) Evaluate the elasticity at p= 45. E(45) (b) Given the computed elasticity value in part (a), is the Christmas music CD an Elastic or Inelastic item? ? (c) Should the unit price be lowered slightly from p= 45 in order to increase revenue? ? (d) Find the value for E to maximize revenue. E =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) $_____billionWorldwide 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? $____ billion
- The management of Titan Tire Company has determined that the quantity demanded r of their Super Titan tires per week is related to the unit price by the equation V144 – (0The weekly sales of Honolulu red oranges is given by q=960-10p. (a)Calculate the price elasticity of demand when the price is $32 per orange.  (b) The demand is going down by ___% per 1% increase in price at the price level. (c) also, calculate the price that gives a maximum weekly revenue $____ (d) find this maximum Revenue $____An oil-producing country estimates that the demand for oil (in millions of barrels per day) is D(p) = 9.5e-0.01p, where p is the price of a barrel of oil. (a) Determine the elasticity of demand function, E(p), for the oil. (b) Complete the table below and then identify the price per barrel, p, that maximizes revenue. Price per barrel, p Elasticity, E(p) 80 90 100 110 120Tutorial Exercise Worldwide annual sales of smartphones in over a 5 year period were projected to be approximately q = −10p + 4,540 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) In one particular year the actual selling price was $277 per phone. What was the corresponding price elasticity of demand? Interpret your answer. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What, to the nearest $10 million, would have been the resulting annual revenue? Step 1 (a)Obtain a formula for the price elasticity of demand E. Recall that the price elasticity of demand E is the percentage rate of decrease of demand divided by the percentage increase of price, given by the formula. E = − dq dp · p q We are already given the formula q = −10p + 4,540 for the demand of smartphones (in millions). First, we find the derivative…Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the 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 $355 per phone. What was the corresponding price elasticity of demand? E=______ The demand is going (up/down) by about _____% per 1% increase in that price level.In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 69 - 300 at (9, p) = (25, 150). (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is inelastic, an increase in price will increase the total revenue. Need Help? Read It Watch ItErnest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for natural gas is -0.3, and he spends 10% of his income on natural gas. What is his substitution price elasticity? (a) -0.26 (b) -0.34 (c) 0.20 (d) -0.12 (e) None of the above Correct answer is (a) -0.26; Please explain how to solve.Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.Worldwide annual sales of smartphones over a two year period were approximately q=-5p+3030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) in one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? The demand was going down by about _____% per 1% increase in price at the 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.) $______billionSEE MORE QUESTIONS