Utilize price elasticity of demand for maximum total revenue

Assignment Help Business Economics

Reference no: EM131081079

What is price elasticity of demand when price increase from $3 to $4 and Qd decrease from 90 cups to 70 cups as the price of tickets rise from $200 To $250, what is the price elasticity of demand for a) business travelers and b) vacationers? use midpoint method to calculate. Why might vacationers have a different elasticity from business travelers?

How can sellers utilize the price elasticity of demand for maximum total revenue?

Reference no: EM131081079

Questions Cloud

Describe the elements of structure that are present : Write a 250-500-word essay that explains how the essay qualifies as a story. Describe the elements of structure that are present. What does it communicate?

Us for regulating ethics and standards : Foreign countries tend to have less stringent laws than in the US for regulating ethics and standards. How does the Sarbanes Oxley Act affect foreign corporations, if at all?

Pickup trucks relative to the quantity supplied : During the summer of 2011, General Motors (GM) had trouble selling pickup trucks. According to an article in USA Today : General Motors dealers had a 122-day supply of Chevrolet Silverado and GMC Sierra pickups in June, more than 50% above what’s con..

Role of a human resource professional : Take the role of a human resource professional and draft a memo to managers with ideas on how they can motivate employees in their department, without having a major budget impact.

Utilize price elasticity of demand for maximum total revenue : What is price elasticity of demand when price increase from $3 to $4 and Qd decrease from 90 cups to 70 cups as the price of tickets rise from $200 To $250, what is the price elasticity of demand for a) business travelers and b) vacationers? use midp..

Identify the cost constraint on ad spending : An advertising agency has developed Internet and television ads for a particular business. Each Internet ad costs $200 per run and each television ad costs $500 per run. The business does not want the sum of Internet and television ads to be run to e..

Find the minimum compensation-compensating variation : Suppose that consumer’s utility is described by the following function: U(x;y) = x2y, where x is the amount of good X that the consumer consumes and y is the amount of good Y that the consumer consumes. Consumer’s income is 360 euros. Find the minimu..

How do administrative agencies influence business entities : How do administrative agencies influence business entities?

Find the optimal strategy for each player : Represent the situation as a game and find the optimal strategy for each player. State your final answer in the terms of the original question. A farmer grows apples on her 500-acre farm and must cope with occasional infestations of worms.

User Account

All Pages