Some information about price elasticity of demand

Assignment Help Business Economics
Reference no: EM131095605

Each scenario below gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will increase, decrease, or not change the firm's total revenue. Honest Abe\'s Used Cars estimates the price elasticity of demand for their cars to be 2.6. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 95%. Abe must have prices by Abe's total revenue.

Reference no: EM131095605

Questions Cloud

Costs of production for the current month output : Commodore Candies produces a 3-pound box of chocolate that it sells for $6.75 to various retail outlets. Commodore’s output capacity for this product is 10,000 units per month, with a one-shift operation, but it can produce more using overtime labor,..
How sensitive is the npv to changes in the price of the new : What is the payback period of the project. What is the profitability index of the project. What is the IRR of the project? What is the NPV of the project. How sensitive is the NPV to changes in the price of the new smart phone. How sensitive is the N..
What is the difference between Real GDP and Nominal GDP : GDP is the major economic variable used to measure the health of the economy; indeed, as we learn, recessions are defined based on the direction of change in GDP. GDP is a difficult measure to construct, as certain transactions and expenditures are n..
Greatest vulnerability in any control system : Human nature is the single greatest vulnerability in any control system and cannot be ignored. Organizations should always take human behavior into account when designing access plans and strategies.
Some information about price elasticity of demand : Each scenario below gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will increase, decrease, or not change the firm's total revenue. Honest Abe\'s Us..
How distant places moving and relocation is supplied : Distant places moving & relocation is also supplied through packers and movers in India. Your goods & gadgets are added for your door. There is no need to lease greater vehicle.
Test case for system can cover : Consider the system S which can take input parameters and each parameters can take on M values, what is the number of pairs a single test case for this system can cover?
Dentist office database : This database is being created for the receptionist/manager of a dentist's office. The office has one dental assistant and one dentist.  Each performs various procedures and each procedure has a specific cost.
Basic technical information about passwords : This week's reading gives you basic technical information about passwords and encryption, and how to recover data protected by these mechanisms. There is also a section on Steganography, which literally translated means "covered writing."

Reviews

Write a Review

Business Economics Questions & Answers

  Concludes that cresap was pulled out of poverty

Easterly (2012) presents the tale of Thomas Cresap in “Intermezzo: In Search of a River” (pages 16-19) and concludes that Cresap was pulled out of poverty. Please discuss the economic growth detailed in the story and how poverty was reduced.

  Illustrate what happens to equilibrium income

Government increases its spending by $2 billion and raises taxes by $1billion. Illustrate what happens to equilibrium income.

  Which counts in the government spending category

Which counts in the government spending category of GDP?

  Is this decreasing-cost industry

A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and put into use. The TC per bottle for production up to 100,000 bottles per day is given in th..

  What factors in the calculation of CPI caused this effect

In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone model. How did the introduction of the iPhone 4S affect the Consumer Price Index? What fact..

  1 know how to do the staticdynamic efficiency

1. know how to do the staticdynamic efficiency problem.suppose the marginal benefit and marginal cost of extracting a

  Subsequent withdrawals decreasing at the rate

How much do you have to deposit today in order to allow 9 annual withdrawals, beginning at the end of year 17, with a first withdrawal of $1748 and with subsequent withdrawals decreasing at the rate of 4% over the previous year’s withdrawal? Assume a..

  What is the result of an increase in the price of bread

What is the result of an increase in the price of bread, a normal good? The demand curve shifts to the right. The demand curve shifts to the left. The quantity demanded increases. The quantity demanded decreases.

  Annual operating and maintenance expenses

The annual operating and maintenance expenses are estimated to be $1,000. If Convington's MARR is 15%, how many years will it take before this machine becomes profitable.

  Calculate the equilibrium quantity and price

Consider a perfectly competitive market where demand is given by P=84.20-2.15Q and supply is given by P=12.78+1.20Q. Calculate the equilibrium quantity and price.

  Compare and contrast the history of amazon-nyse etc

Histories of the following MNEs/industries, from their beginings to the present day, such Fedex, Amazon, NYSE (New York Stock Exchange), Pharamaceutical Industry, General Electiric, Lenovo. Compare and contrast the history of at least two of these..

  What are the three most relevant environmental categories

Think of a company (such as Apple Computers or Samsung) with which you are familiar. In a response of no less than 250 words, what are the three most relevant environmental categories that need scanning for that company? How have those categorizes im..

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