Calculate toms price elasticity of demand, Microeconomics

Assignment Help:

Tom's pizza sells for $ 5.00 ea and serves an average of 425 customers per week. During a recent sale, Tom lowered the price to $ 4.00 per ea. Sales increased to 500 customers during the week of the sale.

A. Calculate Tom's price elasticity of demand

B. Tom is considering lowering his permanent price to $ 4.50 ea to increase revenue, how many pizzas is Tom likely to sale?

C. Would you advise him to lower the price?


Related Discussions:- Calculate toms price elasticity of demand

Consider an upstream firm in russia that mines iron, Consider an upstream f...

Consider an upstream firm in Russia that mines iron ore at a total cost of $15 q , where q is the number of tons of ore. This upstream firm then ships ore to Germany for processi

Explain the industrial revolution, The Industrial Revolution The centur...

The Industrial Revolution The century after 1750, saw the industrial revolution proper: invention of steam engine, spinning jenny, power loom, hydraulic press, railroad locomot

RESOURCE MARKETS, 1. What is a resource market? 2. Describe resource deman...

1. What is a resource market? 2. Describe resource demand and resource supply. 3. Define derived demand. 4. Describe the resource market demand and supply curve. 5. Define a te

#Demand and supply equations, Ask question # how do you formulate a demand ...

Ask question # how do you formulate a demand and supply equations when you a table of prices, quantity demanded and supplied?

Attitude towards risk - consumer choice involving risk, Attitude towards Ri...

Attitude towards Risk: Let's assume the following: The utility function   •  has the single argument "wealth" measured in monetary units,  •  is strictly increasing, and

Direct utility, what is direct utility in micro economics?

what is direct utility in micro economics?

Is 101 module 4, As you know, Northern Nevada Green Coalition is interested...

As you know, Northern Nevada Green Coalition is interested in showing how green energy production can help to grow and diversify Nevada's economy. In order to do that, we need to a

Contingent commodity framework, 1) Lynne's income is £2, 000 and she is ris...

1) Lynne's income is £2, 000 and she is risk averse. The probability of someone slipping on her stairs is 1/8. If this happens, she will be sued for £1, 000 and will have to pay th

Why a high level of labor force growth is correlated, Why a high level of l...

Why a high level of labor force growth is correlated A high level of labor force growth is correlated--even though less powerfully--with a low level of output per worker. The a

Write Your Message!

Captcha
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