What will happen to revenue rise or fall

Assignment Help Econometrics
Reference no: EM13189207

An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price? What will happen to revenue (rise or fall)? If instead it raises price by 20%, what is the percent decline in sales?

Reference no: EM13189207

Questions Cloud

Will an airline be likely to raise price for both groups : Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price Quantity Demanded Quantity Demanded for business travelers for Vacationers 150 2,900 1,000 200 2,700 750 250 2,550 550 300 2,..
Expressionism-serialism-nationalism-impressionism : Of these techniques: expressionism, serialism, nationalism, impressionism, minimalism, and neoclassicism, which is your favorite? Please explain why.
Identify victims of mass causalities : What are some of the benefits and limitations of using DNA to identify victims of mass causalities? Is a shift toward DNA based identifications a good idea? When answering take into account available resources, types of attacks, evidence collection a..
How much will this ordinary annuity be worth at the end : Mike's Sport Shop deposits $3,600 at the end of each year for 12 years at 7% annual interest.
What will happen to revenue rise or fall : An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price What will happen to revenue (rise or fall) If instead it raises price by 20%, what is the per..
How large a radio telescope would we need to detect signal : Suppose instead that the signal is being broadcast from the other side of the Milky Way Galaxy, about 70000 light-years away. How large a radio telescope would we need to detect this signal?
Levels of protection-functionality and limitations : Explain a Class Three ensemble. Include levels of protection, functionality, and limitations. Identify the proper respiratory protection for a Class Three ensemble,
What is the expected monetary value with the survey : A market research is available for $10,000. Using a decison tree analysis, it is found that the expecyed monetary value with no survey is $75,000. If the expected value of sample information is 62,000, what is the expected monetary value with the ..
What is the size of the labor force : Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725. a. What is the size of the labor force

Reviews

Write a Review

Econometrics Questions & Answers

  Find average power per square meter of wind farms to rise

Assume that current wind farms produce 2.5 W/m2. Succinctly explain whether you would expect the average power per square meter of wind farms to rise or fall as the production of wind energy expands to, say, 10% of our primary energy consumption...

  Determine delta companys profit maximizing output

The cost, demand and revenue functions have been determined By Delta and given below. The total amount of widgets sold in the market by all producers, including Delta's sales, is 238 units. Delta's current p..

  What is abc incs average monthly revenue

Abc Inc. sells bike tires for $25. It's sales have averaged 8,000 units per month. Recently its closes competitor Efg Inc. reduced their price for bike tires form $35 to $30. A result Abc's sales declined by 1.500 units per month.A. what is the ar..

  What amount should you bid to maximize the probability

Suppose we are interested in bidding on a piece of land and we know one other bidder is interested.1 The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is u..

  Regression equation to predict average hourly earnings

This question refers to the estimated regressions in table 1 computed using data for 1988 from the United States Current Population opinion poll.

  What was pricing policy given the change in demand

Advanced technology digalized theEDG read out and the demand for the old style machine dropped. The drop in demand resulted in a demand resulted in a demand curve of P=3900-.15Q. What was XYZ's optimal output and priving policy given this change i..

  Lnrgdpaus and briefly comment on the graphs

Plot the level and first difference of lnrgdpaus and briefly comment on the graphs and obtain the sample correlograms of the level and first difference of lnrgdpaus for 20 lags. What do they suggest to you?

  What is the rate of economic growth

Now calculate the GDP deflator for 2011 and 2012 (assuming that 2011 is the base year). d) What is the rate of economic growth between the two years as defined byt he percent change real GDP. e) What is the rate of inflation between the two years?

  Determine the expected annual operating cost

A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.

  Calculate coefficient of variation

The XYZ Company has estimated expected cash flows [in thousands] for 1996 to be as follows: Calculate: a. expected value b. standard deviation c. coefficient of variation d. If the true cash flows are normally distributed with mean from (a) and stand..

  Calculate steady-state capital-labor ratio for each country

Consider 2 countries, Avataria and Twilightia, which can be described by the Solow model. Avataria has a capital-labor ratio that is initially twice as big as that of Twilightia, but neither country is yet in a steady state. Both countries have th..

  Create an excel plot of the two pw curves

A company is considering replacing its asphalt parking lots with concrete, at first cost of $1,200,000, and an annual maintenance cost of $15,000. Another option is also available, which is resurfacing the parking lots with asphalt with a first co..

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