What level would price have to be lowered

Reference no: EM13181948

Deluxe Carpeting a leading manugacturer of carpeting sold 28 million square yards of carpeting at a price of $16 per yard. This year, GNP per captia is expected to fall from $19,000 to $17,000 as the nation enters a recession. Deluxe expects that current-year sales to fall to 20 million square yards.

a. Calculate the implied arc income elasticity of demand. I =?

b. Given a price elasticity coefficient of -2.5, to what level would price have to be lowered to maintain there sales at a level of 28 million square yards. New Price =?

Reference no: EM13181948

Questions Cloud

State the aldol condensation is very sensitive to the mole : The Aldol condensation is very sensitive to the mole of ratio of starting materials used. What would be the products of 1:1 mole ratio

Calculate the cross elasticity of demand : During the past year, the average price of lots along Lake Michigan in Carol Beach rose from $2,500 to $3,000 per foot of lake front. At the same time, sales of new homes located off the Lake rose from 40 to 70 units. Calculate the cross elastici..

Explain and draw the structure of a compound : Draw the structure of a compound with the following analytical data: a mw of 72 g/mol, no silver mirror in a Tollen's test, and a yellow precipiate formed in an iodoform test.

Find out the empirical formula and draw a possible structure : Determine the empirical formula and draw a possible structure for an organic compound with the elemental composition

What level would price have to be lowered : Calculate the implied arc income elasticity of demand. I =? Given a price elasticity coefficient of -2.5, to what level would price have to be lowered to maintain there sales at a level of 28 million square yards. New Price =?

State maintain a more consistent matrix in a solution : To keep ionic strength constant and maintain a more consistent matrix in a solution where ions could be influencing each other, another component is often added to the solution

Explain what is the volume of the air in the balloon : ideal gas on a cool morning (11*C). The air is heated to 103*C. What is the volume of the air in the balloon after it is heated?

Calculate price elasticity of demand for tlc service : TLC Lawn Care, Inc. provides fertilizer and weed control services to residential customers. Its seasonal services package, regularly priced at $250, includes several chemical spray treatments. As part of an effort to expand its customer base, TLC..

Explain what mass of ethanol is present in the vapor : What mass of ethanol is present in the vapor? (the vapor pressure of ethanol is 10.0 torr at -2.3 degrees C and 40.0 torr at 19 degrees

User Account

All Pages