Price elasticity of demand

Assignment Help Business Economics
Reference no: EM136910

Q1. Assume that an investor is risk-neutral (i.e. suppose that an investor always chooses the investment with superior expected rate of arrival even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable CD's is 7% and this investor purchased the 1year T-bill, what must (s)he expect to happen to short term interest rates over the coming year?

Q2. The price elasticity of demand for the Redberry IV cellular phone is - 2.5. The average wholesale (invoice) cost for the Redberry IV cellular phone is $280 and the marginal selling cost per unit is $150. What would be the profit maximizing price for the manufacturer of this cellophane?

Reference no: EM136910

Questions Cloud

How would this affect his physical appearance : What is the connection among ribosomes, endoplasmic reticulum, golgi apparatus and the plasma membrane? How do they work together in the system.
Compute the surface-area-to-volume ratio of a cube : Compute the surface-area-to-volume ratio of a cube whose sides are 100 um in length to estimated the surface-area-to-volume ratio of the fern spore cell.
Complete a chart by identifying six actions : Complete a chart by identifying six actions that reduce the risk of infection and strengthen the body's immune system. In the second column, explain how the action reduces risk of infection and strengthens the body's immune system.
Assume that the rate of sea-floor spreading : Assume that the rate of sea-floor spreading was constant during the 1-million-year period depicted above, what have to be the approximate age of marine fossils found in undisturbed sedimentary rock instantly overlying the igneous rock at the arrow la..
Price elasticity of demand : What must she/he expect to happen to short term interest rates over the coming year.
What is the piston height h : What is the piston height h if the temperature is 30 degrees? How far does the piston move if temperature is increased by 200 degrees.
What is a control center : A test tube contains starch, pancreatic amylase, and water. The buriet is negative. After 30 minutes, Benedict's test is positive. What substance is present.
How must this ppd test be interpreted : When Purified Protein Derivative (PPD) isolated from Mycobacterium tuberculosis was injected into the skin of a patient, it caused an area of hardening 1 cm in diameter. How must this PPD test be interpreted? What caused the result.
A doughnut contains large quantity of energy : Which phenomenon accounts for movement of these genes. Because a doughnut contains large quantity of energy that can become available for our metabolism when eaten, why isn't the doughnut "jumping" all over counter or hot to the touch.

Reviews

Write a Review

Business Economics Questions & Answers

  Airline remain in business

Should the airline replace its night flight from LA with a morning flight as well as should the airline remain in business.

  Rocky mountain region visited yellowstone park

Study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visited Yellowstone Park, 40 percent visit the Tetons, and 35 percent visit both.

  Difference between microsoft and software retailers

The biggest difference between Microsoft and software retailers is the market structure in which they operate.

  Least two possible solutions to resolve paradox

Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.

  Michael is not maximizing his utility

Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.

  Concept of diminishing marginal utility

The opportunity cost of Juan's time is $8 per hour. If Juan receives $2 per pound for his fish, what is the optimal number of hours he should spend fishing.

  Workers in different jobs

Outline any two reasons, why the marginal revenue product differs between workers in different jobs.

  Absolute advantage in the production

Suppose each of the five sellers can supply at most one unit of the good. Elucidate the price when market quantity supplied is exactly 3.

  Two alternative recreation projects

A county is considering using a piece of park land for one of two alternative recreation projects.

  Increase profits by practicing price discrimination

A pharmaceutical firm faces monthly demands in the U.S. and Mexican markets for one of its patented drugs.

  Exchange rate for a ton of cereal

In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer

  Elasticity of demand for non-users

Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.

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