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

WITH reference to incidence taxation,explain with the help diagrams,who bears the incidence of taxation when the demand for a commodity is perfectly inelastic, perfectly elastic an

1. Implicit and explicit revenues minus implicit and explicit costs equals: A. accounting profit. B. economic profit. C. zero profit. D. implicit profit. 2. A business owner mak

Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another

Zac consumes only pizza and chianti. He consumes these goods in fixed proportions: 2 slices of pizza for one glass of chianti. His income is $100 per week. a. Derive demand func


Inflation is not possible under the gold standard.” Is this statement true, false, or uncertain? Explain your answer.

Explain the difference between elastic and fixed supply

Depreciation T ax Shield The decrease in corporate income taxes suitable to the deductibility of depreciation from the firm's taxable earnings.  Although depreciat

compare and contrast between cordinal and ordinal approaches