Bookseller, Microeconomics

Nile.com, the online bookstore, wants to increase it''s total revenue. One strategy is to offer a 10% discount on every book that sells. Nile.com knows it''s customers can be divided into two groups according to their responses to the discount. The accompanying table shows how the two groups respond to the discount.
Volume of sales before the 10% discount
Group A (Sales Per Week)1.55 million
Group B (Sales Per Week)1.50 million

Volume of sales after the 10% discount Group A (Sales per week)= 1.65 million Group B (Sales Per Week)= 1.70 million
Question: Using midpoint method, calculate the price elasticities of demand for Group A and Group B
Posted Date: 2/25/2013 11:36:05 PM | Location : United States







Related Discussions:- Bookseller, Assignment Help, Ask Question on Bookseller, Get Answer, Expert's Help, Bookseller Discussions

Write discussion on Bookseller
Your posts are moderated
Related Questions
illustrate and explain the changing demand gor big Mac using the indifference curves and budget line

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of

what are the limitations of economies of scale?

draw the following diagrams and explain their shapes: the production possibilities frontier a demand curve the demand curve for a firm in perfect competition the demand curve for a

"Assume the local fixed telecommunications company is a monopoly. It costs the company €2 per month to give voice messages service to a customer. Elasticity of demand for voice mes

China had to convert its yuan into dollars. Does that cause the dollar to appreciate or depreciate?

What will be the effects of americas dependency on china?

what is the theory of second best? prove the theorem with the help of a diagram.

causes of market failure and its solutions?

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4