Illustrate what is the arc cross elasticity of demand

Reference no: EM1327641

Sales Projections & Elasticity

The Future Flight Corporation manufactures a variety of frisbees selling for $2.98 each. Sales have averaged 10,000 units per month during the last year. Recently Future Flight's closest competitor, Soaring Free Company, cut its prices on similar frisbees from $3.49 to $2.59. Future Flight noticed that its sales declined to 8,000 units per month after the price cut.

(a) What is the arc cross elasticity of demand between Future Flight's and Soaring Free's frisbees?

(b) If Future Flight knows the arc price elasticity of demand for its frisbees is -2.2, what price would they have to charge in order to obtain the same level of sales as before Soaring Free's price cut?

Reference no: EM1327641

Questions Cloud

Internal analysis of the kraft foods group : Conduct a critical and thorough internal analysis of the Kraft Foods Group, assessing as many of the company's internal strengths and weaknesses as you can.

Express the advantages of joining two tables : express the advantages of joining two tables.What is the inner join and what is outer join? Please give me some real applications of joins.

Discussing the cyber law : Discuss how many Businesses or Persons are targeted by Cyber Crimes (Identity Theft, Financial Crimes, Hacking, & Spam) and Cyber Terrorists.

Leader-s company develops leadership skills : Researched how the leader's company develops leadership skills among its high potential managers.

Illustrate what is the arc cross elasticity of demand : Illustrate what is the arc cross elasticity of demand among Future Flight's and Soaring Free's frisbees

Write dpwn an algorithm, using pseudo code : Write down an algorithm, using pseudo code, "Consensus algorithm": A group of ten people want to decide which one flavor of ice cream they will all order, out of three options.

Description of computer question : Description of Computer question - system that is designed to integrate all activities within a business is referred to as

Find the critical issue(s) confronting wcc north america : What is the critical issue(s) confronting WCC North America.

Computing future values in given case : Chuck Tomkovick is planning to spent $25,000 today in mutual fund that will offer a return of eight percent each year. What will be the value of investment in ten years?

User Account

All Pages