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Sonic Boom Corporation sells drum sets. At a price of $600 per set, they sold about 500 sets per month. The new general manager for this product, Ella Sticity, decided that the company needed more revenues and increased the price to $700 per set. However, Sonic Boom is now selling only 200 drum sets per month at the new price. What is the arc price elasticity for this product? Define price elasticity and how it should be used for pricing this product. What do you recommend for the price of this product (e.g. stay at $700 or change, higher or lower?) and what additional information would be useful in the pricing decision? What would be your recommendations for setting up a model to forecast future demand for this product?
Suppose you can collect country level trade flows and GDP data. Explain how can you verify monopolistic competition model with data. Illustrate what do you expect is impact of transportation costs.
If it causes output to increase by more than 10 percent, production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale.
What economic considerations must individuals take into account in making the decision to open a business?Coporate Finance
What effectiveness of monetary policy depends on how easy it is for changes in money supply to change interest rates.
Who benefits from a tariff or quota. Who loses. Illustrate what are positives and negatives of protectionist trade policies on federal government's part. Which policy is best right now.
How is culture of India reflected in idea of sacred cow. Illustrate what influence does this have on arts of India.
Examine advantages and/or disadvantages of distributing market pesticide permits to each farm operating in eater shed equal to 40% of current levels of use of that pesticide, versus simply ordering each farm to reduce pesticide issues to 40% of cu..
Presumptuous the demand curves were linear or graphically demonstrate your reasoning.
Discuss the Federal Reserve's assessment of the current economic activity and financial markets. Elucidate the Federal Reserve's current view about inflation.
appliance store are unable to successfully compete also are driven out of business. why does Wal-Mart have a cost advantage over its competitor.
The congestion fee was raised to £8 in July 2005. Illustrate the new equilibrium point on your graph also assuming new charge is now optimally set.
Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer.
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