Price elasticity of the old-aristocracy

Assignment Help Business Management
Reference no: EM131068553

A Company, Celebs are Us, is the only firm to offer individuals an evening with selected celebrities to discuss the Meaning of Life: From Plato to Beckham. It faces two types of demand. The first group of consumers are the old aristocracy who can afford to pay a lot so that they can rub shoulders with the new-money. The second group consists of all the hopefuls who would like to become celebrities but cannot yet fully afford it. The price elasticity of the demand for such evenings by the old aristocracy is less than unity while that of the ‘wannabes' is greater than unity. Assuming that the company cannot discriminate in pricing the evenings:

(a) Under which circumstances will the evenings be offered to both groups of consumers?

(b) Under which circumstances will the evenings be offered only to one group of consumers?

(c) How would your answers to (a) and (b) change if the price elasticity of the old-aristocracy was greater than that of the ‘wannabe'?

Reference no: EM131068553

Questions Cloud

Explain requirements that could be used in the personnel : Explain and evaluate the relative worth of management jobs at the company and determine a compensation structure to assist retention and career management of this important element of the company's human resources.
Do you feel that you already understood this issue : After watching the video, describe your reaction to the video and the implications to your own work. Did it surprise you to learn how serious plagiarism is, or do you feel that you already understood this issue? Do you know of any other instances ..
Identifying the contribution that you could make : Prepare the report for the CEO identifying the contribution that you could make as a management accountant to the activities of the SLT.
Briefly introduce the internal business environment : MGN446 Business in Australia. Briefly introduce the INTERNAL BUSINESS ENVIRONMENT (draw on the required readings on Organisational culture and structure)
Price elasticity of the old-aristocracy : Under which circumstances will the evenings be offered only to one group of consumers? How would your answers to (a) and (b) change if the price elasticity of the old-aristocracy was greater than that of the ‘wannabe'?
Heating on the consumption of heating : Analyse the effects of an increase in the cost of heating on the consumption of heating and the well-being of that individual before and after the implementation of government policy;
Par value of holdings : If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is 4 years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) w..
What is the most salient experience in my life directly : With regard to varying abilities, what is one of my cognitive, physical, and/or emotional strengths and one of my limitations---and in what ways do they influence my life?
Fundamentals of corporate finance-nominal vs real cash flows : You are graduating in two years. You want to invest your current savings of $5,000 in bonds and use the proceeds to purchase a new car when you graduate and start to work. You can invest the money in either bond A, a two-year bond with a 3% annual in..

Reviews

Write a Review

Business Management Questions & Answers

  Stay current on osha standards or the green movement

Find an article of your choice that discusses what you can do to stay current on OSHA standards or the Green movement.

  Discuss the four levels of outcome evaluationover 200 word

discuss the four levels of outcome evaluationover 200 word essay with reference that discuss define and provide the

  Trade-offs are necessary to increase productivity

Many times trade-offs are necessary to increase productivity. What are important trades-offs involving the inputs to productivity

  A major engineering firm has introduced virtual teams around

A major engineering firm has introduced virtual teams around the globe to resolve client emergencies. Although some of these emergencies are routine (they occur often enough that the engineers have ready-made action plans), several are novel.

  Explain salespeople and customers

Write a 1,050 - to 1,200 word paper speaking a situation in which you are called to present quarterly sales information at an in-person assembly to a group of stakeholders, including managers, salespeople and customers.

  Illustrate what was hugh discretionary income last year

Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. Illustrate what was Hugh's discretionary income last year?

  Myer-briggs type indicator mbtido you see value in the use

myer-briggs type indicator mbtido you see value in the use of the myers-briggs type indicator mbti as a means of

  Cross-cultural realities at work

Cross-Cultural Realities at Work

  Show data collection and audience of online reports

Data Collection and Audience of Online Reports - Explain how was the report organized and designed to meet the needs of the audience?

  Show the alternative dispute resolution

Discuss an instance where it has been used by an employer with which you are familiar

  Internal business1 what issues arise in doing business

internal business1. what issues arise in doing business globally?2. what trends have you observed in organizational

  International management and stereotyping

Explain how can companies and international managers go beyond the "sophisticated stereotyping" that a superficial understanding of cultures might produce?

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