#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
• The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.
Of the above examples, which are more elastic, and which is the least elastic? Why? Answer the following questions:
• Why is elasticity an important concept for a business?
o Bridge tolls
o Beachfront properties
o Gourmet coffee
o Gasoline
o Cell phones
Now that you are an expert on elasticity’s, what do you think would be the best time of year to raise prices, and why?
What do you think the elasticity’s are in the flower business?

Posted Date: 10/22/2012 11:03:28 AM | Location : United States

Ask an Expert

Related Discussions:- compute the following price elasticities of demand, Assignment Help, Ask Question on compute the following price elasticities of demand, Get Answer, Expert's Help, compute the following price elasticities of demand Discussions

Write discussion on compute the following price elasticities of demand
Your posts are moderated

Write your message here..

Related Questions

Demand, demand elasticity demand elasticity

Problem Solving, Regardless of the market structure, oligopolist and the mo... Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?

Graded discussion board, The Case: In Pakistan, sugarcane, wheat, rice and ... The Case: In Pakistan, sugarcane, wheat, rice and cotton accounted for 90% of the value added in crops and 6% of GDP in the last fiscal year but the average yield of these crops is

Demand, #questASSIGNMENT #1 The demand function for Product X is given by: ... #questASSIGNMENT #1 The demand function for Product X is given by: Qdx = 80- 2Px- 0.05P²x -0.2Py + 4Pz + 0.01I+ 2A Where: Px Price of good X $120.00 Py Price of related good y $100

Compensated demand curve, how does compensated demand curve help managers? how does compensated demand curve help managers?

Slope of isoquent, Where the equation of isoquent drived from? Where the equation of isoquent drived from?

Why firm charges different prices to different consumer, Why firm charges d... Why firm charges different prices to different consumer?  Every firm needs to maximize its profit. When goods are sold to different customers, each customer negotiate price of

Theories of common property resource management, Normal 0 false... Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What does the basic neoclassical model assume about market, What does the b... What does the basic neoclassical, or traditional, model of economics assume about markets? It supposes that markets are perfectly competitive and smoothly functioning, and thos

Elasticity of Price Expectations (epe), Elasticity of Price Expectations (e... Elasticity of Price Expectations (epe)