Quantity demanded in percentage terms

Assignment Help Microeconomics
Reference no: EM13321608

You run a small business and would like to predict what will happen to the quantity demanded for your product if you raise your price. While you do not know the exact demand curve for your product, you do know that in the first year you charged $45 and sold 1200 units and that in the second year you charged $30 and sold 1800 units.

a. If you plan to raise your price by 10 percent, what would be a reasonable estimate of what will happen to quantity demanded in percentage terms?

b. If you raise your price by 10 percent, will revenue increase or decrease?

Reference no: EM13321608

Questions Cloud

Determine what is the potential of the cell : What is the potential (volts) of the cell at 25oC when the appropriate beakers are constructed to have MnO2 = 0.0127 mols, [H+] = 0.0130 M, [Mn2+] = 0.167 M, [IO3-] = 0.146 M, and I2 = 0.0154 mols [Note: The standard reduction potentials of the tw..
Find where will he see his reflection in the mirror : A metallic, spherical Christmas tree ornament has a diameter of 16.00 cm. find where will he see his reflection in the mirror
Human resource management and talent development : HUMAN RESOURCE MANAGEMENT AND TALENT DEVELOPMENT
What is the instantaneous emf in the coil : A 500-turn circular coil with an area of 0.0500 m^2 is mounted on a rotating frame, What is the instantaneous emf in the coil at the moment that the normal to its plane is parallel to the field
Quantity demanded in percentage terms : You run a small business and would like to predict what will happen to the quantity demanded for your product if you raise your price. While you do not know the exact demand curve for your product
Explain the ionization constant for hclo : before addition of any KOH b) after addition of 25.0 mL of KOH c) after addition of 35.0 mL of KOH d) after addition of 50.0 mL of KOH e) after addition of 60.0 mL of KOH
How many moles of helium are in the tank : A 20.0L tank contains 0.225kg of helium at 18.0%u2218C. The molar mass of helium is 4.00g/mol. How many moles of helium are in the tank
Is she better or worse off when given a rebate equal to the : Suppose the income elasticity of demand for food is 0.5 and the price elasticity of demand is -1.0. Suppose also that Felicia spends $10,000 a year on food, the price of food is $2, and that her income is $25,000.
What additional information do you need : By observing an individual"s behavior in the situations outlined below, determine the relevant income elasticities of demand for each good (i.e., whether it is normal or inferior). If you cannot determine the income elasticity, what additional inform..

Reviews

Write a Review

Microeconomics Questions & Answers

  What do you predict will be the effect on the money supply

Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of 1400 billion due to a sharp contraction i..

  Explain the economic problem facing the consumer

ECON 301 Intermediate Microeconomics Assuming diminishing marginal utility and an indifference curve with Apples on the X axis and Cheese on the Y axis, fully explain how the slope of the indifference curve measures the relative value of the goods ..

  What barrier did possess that kept others from entering

Monopolies are typically frowned upon in U.S. business, preferring more competitive models. However, many industries are stillmonopolistic in our everyday dealings. In this discussion, name an example of a monopoly that you have encountered

  How do costs play into your everyday life

How do costs play into your everyday life For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate? Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)

  The amount consumers spend on health care

One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment

  Expansion in money supply increase real output nd employment

Historically, shifts towards a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? why or why not?

  Define dependable positive correlation

There is significant disagreement whether a dependable positive correlation (relationship) exists between incentive pay and individual employee productivity. Question is what causes you to come down on one side or the other on this issue?

  Identify the four major tools of monetary policy

Do protectionist policies benefit producers, consumers, workers, or the government? Explain.b) Explain how the "Buy American" theme hurts Americans. a) Identify the four major tools of monetary policy.

  Cost minimizing combination of labor and capital

A manager hires labor and rents capital equipment in a competitive market. The current wage is $6.00 per hour and capital is rented at $12.00 per hour.

  What would you recommend in terms of quantity changes

Libertyville has two optometrists, Dr. Jones (J) and Dr. Smith (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below

  You are willing to pay the higher subway fare in order to

You currently take the subway to work. although taking the bus is cheaper, the ride takes longer. so you are willing to pay the higher subway fare in order to save time.

  Explain why the waiter will provide bad service

Explain why the waiter will provide bad service and since you are interested in good service, can you convince the waiter, in a binding/credible manner that you will tip him?

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