When marginal revenue is positive, demand is: O unit elastic. O elastic. inelastic. O There is not sufficient information to classify the elasticity of demand.
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- A movie production company faces a linear demand curve for its film, and it seeks to maximize total revenue from the films distribution. At what level should the price be set? Where is demand elastic, inelastic, or unit elastic? Explain.(Categories of Price Elasticity of Demand) For each of the following absolute values of price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. In addition, determine what would happen to total revenue if a firm raised its price in each elasticity range identified. Absolut Value Elasticity Effect of Price Increase a b c dSuppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a. Calculate the price elasticity of demand between 90 and 110. b. Is the price elasticity of demand between 90 and 110 elastic, unit elastic, or inelastic? c. Will Erins total revenue rise if she increases the price from 90 to 110? d. Calculate the price elasticity of demand between 110 and 130. e. Is the price elasticity of demand between 110 and 130 elastic, unit elastic, or inelastic? f. Will Erins total revenue rise if she increases the price from 110 to 130?
- 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 $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?IN OWN WORDS, about 200 to 400, Discuss the price elasticity of liquor products of.a liquor company. Explain how the company's strategies (revenue and profit) would be affected by price elasticity. will give a downvote for plagiarised answer.ok int rences Mc Graw Hill Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna's demand curve. Price ($) 40 36 32 28 24 20 16 12 8 4 0 4 8 W (38, 19) 12 16 20 24 28 32 36 40 Quantity per period O Search > 3 of 6 SAMSUNG www Next >
- When the demand curve of colgate is vertical therefore the elasticity of colgate is said to be Select one: a. perfectly elastic b. inelastic c. perfectly inelastic d. ElasticThe 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, Decayfighter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopdecay’s sales declined by 1,500 units per month.a. What is the arc cross elasticity of demand between Stopdecay’s toothbrush and Decayfighter’s toothbrush? What does this indicate about the relationship between the two products?b. 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.c. What is Stopdecay’s average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)?d. Is the result in part (c) necessarily desirable? What other factors would have to…How do I get the price elasticity number?? and how do I graph it? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16
- 126. The 1onovWIlng demanu TunctioII IS giveln. q = 40 – 3,5p Calculate the point elasticity of demand at p 20 and at p 10 A firm faces 127. demand function (where q=quantity demanded and p-price): q = 400 - 4p and a total cost (TC) function (where q=output): TC =q2 + 20q + 375 Find the firm's profit maximizing output level using the profit maximizing condition MR = MC A firm faces a demand function (where q=quantity demanded and p-price): q = 500- 6p 128.Mcdonald's, a big burger joint, is charging $5 for its very famous Big Mac hamburger and selling around 20 milion Big Mac in a year in Singapore. a. Suppose Mcdonald's increases the price of its Big Mac to $6 and still manages to sell the same quantity of the Big Mac. How much revenue will Mcdonald's gain? What can you infer about the price elasticity of demand (PED) For Mcdonald's Big Mac? Assume in an alternative scenario, the increase in the price of Big Mac to $6 reduces its quantity sold to 18 million. How much revenue will Mcdonalds gain now? What can you conclude about the PED now? b. Given the two scenarios presented in part a which one do you think is more likely and why? C. Suppose Mcdonds's Big Mac and movie tickets have negative cross price elasticity of 15. What does this number tell us on the relationship between the Big Mac and movie tickets? Suppose. The Golden Vilage (GV), Singapore's leading cinema exhibitor, decides to increase the price of its movie tickets by 10%.…he demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140?Instruction: Enter your response rounded to two decimal places.Own price elasticity: Demand is: (Click to select) elastic inelastic If the firm prices below $140, revenue will: (Click to select) not change decrease increase b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240?Instruction: Enter your response rounded to one decimal place.Own price elasticity: Demand is: (Click to select) elastic inelastic If the firm prices above $240, revenue will: (Click to select) not change decrease increase c. What is the cross-price elasticity of demand between…