Increase or decrease in total revenue

Assignment Help Macroeconomics
Reference no: EM131113004

To increase revenue and profit, a firm is considering a 4% increase and an 11% increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenue? Explain.

Reference no: EM131113004

Questions Cloud

Is wilson guilty of committing a crime : Jones then handed the bond to Wilson who redeemed it at the corporation's home office and received $1,000; that Wilson gave Jones $100 of the proceeds.Is Wilson guilty of committing a crime?If so what was the crime?Is Jones guilty of committing a ..
Prepare the required journal entries for restin corporation : Restin Co. uses the gross method to record sales made on credit. On June 1, 2010, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2010, Restin received full payment for the June 1 sale.
A multivariate analysis : 1. A multivariate analysis has been undertaken on 22 non-metric (binary observation) variables recorded from 2026 skulls belonging to skeletons recovered from two burial sites of different historic periods; 18th cen- tury Spitalfields, London, and 4t..
Determine the work and heat transfer for each of the process : A piston-cylinder assembly contains 2 lb of water, initially at 300°F. The water undergoes two processes in series: constant-volume heating followed by a constant-pressure process. At the end of the constant-volume process, the pressure is 100 lbf..
Increase or decrease in total revenue : To increase revenue and profit, a firm is considering a 4% increase and an 11% increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total r..
Point of diminishing marginal returns : Obviously there is only so much that can be accomplished in an existing establishment before the owner reached the point of diminishing marginal returns, or where their output reaches a point where additional tables may cause crowding and profits ..
The high cost of health care : This research paper needs six outside sources of information - create an outline of the content of your paper, to demonstrate that your main ideas and research are logically organized.
Discuss contemporary issues in cultural diversity and crime : Describe the differential and inequitable treatment encountered by racial and ethnic groups in policing, courts and corrections. Discuss contemporary issues in cultural diversity, crime and justice.
Whether fouling has occurred during the service period : Determine whether fouling has occurred during the service period. If so, calculate the fouling factor, R"f (m2 · K/W).

Reviews

Write a Review

Macroeconomics Questions & Answers

  Number of units purchased

Evans buys unit trusts and invests for income. He invested £50,000 in a unit trust with an offer price of £125 per unit, and sold the units after 5 years at £162 per unit. During this period he received income from the units of £6,200. This income..

  Americans save much more of their incomes than they

Although the U.S. does not have the highest saving rate in the world, Americans save more money than citizens of every other country

  Calculate the probability of success or failure

Mark Martinko has been a class A racquetball payer for the last 5-years, and one of his biggest goals is to own and operate a racquetball facility.

  Produced efficient outcomes

Obviously, the mortgage and real estate markets have not produced efficient outcomes here. Name and explain the two main categories of market failure that are evident in this situation.

  Calculate consumption-leisure and labor supply

We assume there are no lump-sum taxes and no dividend income: ? = T = 0. We assume h = 1 and the wage rate w = 1. There is a consumption tax such that for each purchased unit of consumption, the consumer needs to pay 1 +t units where t goes to the..

  Analyze the basis for trends in consumption patterns

Examine the basis for trends in consumption patterns as discussed in the article. In your examine, think the utility derived from the products mentioned in article,

  Ratio of income to capital

A. Depict the situation of this two countries using solow diagrams and state clearly what the likely differences of growth rate are? Discuss both the savings rate and growth rates. The diagram must depict this differences. B. What is the ratio of ..

  Price regulation for enrodes

Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 2 million households is Q4 = 1,000 P and Enrodes can produce electricity at a constant marginal cost of $2 per megawatt hour.

  Different ways to solve a system of linear equations

What are three different ways to solve a system of linear equations? Give an example using of one of the methods to solve a system of equations with a complete explanation.

  Explain how would you relate the hiring practices

Explain how would you relate the hiring practices of that industry or industries to fluctuations in the business cycle.

  Economic forecast to make economical decisions

Describe how companies use economic forecast to make economical decisions and how companies make important decision with so much economical unrest.

  Compute the point price elasticity of demand

Compute the point price elasticity of demand for bearing grease.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd