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
Average Total Cost (ATC): ATC is the total cost per unit of output. ATC = TC/y = (TFC + TVC)/y = AFC +AVC ATC falls sharply at the beginning of the production process because

The Supply Curve  – The supply curve exhibits how much of a good manufacturerss are willing to sell at a particular given price, holding constant  other factors that can aff

In the long-run equilibrium, each firm in a perfectly competitive industry will choose the plant size associated with minimum long-run average cost. Is this TRUE or FALSE? And why?

What is the difference between MRTS & MRS?

Ask questMicroeconomics Reference No.:- #Minimum 100 words accepted#


Banks: A company which accepts deposits and issues new loans. It makes profit by charging more interest for loans than it pays on deposits, and through several service charges. By

The reason that an entrepreneur supposes the risk of starting a business is to earn profits.  The fundamental assumption in the theory of production is that a rational owner of a b

Problem: a) What factors would you consider when analysing the digital economy relative to e business? b) "The growing use of the internet by consumers and businesses has re

Problem: (a) Consider the Classical Linear Regression Model (CLRM) Y i = α + βX i + ε i (i) Using the method of ordinary least squares (OLS), derive an expression for