compute the following price elasticities of demand, Microeconomics

compute the following price elasticities of demand, Microeconomics

Assignment Help:

#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
• The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.
Of the above examples, which are more elastic, and which is the least elastic? Why? Answer the following questions:
• Why is elasticity an important concept for a business?
o Bridge tolls
o Beachfront properties
o Gourmet coffee
o Gasoline
o Cell phones
Now that you are an expert on elasticity’s, what do you think would be the best time of year to raise prices, and why?
What do you think the elasticity’s are in the flower business?

Related Discussions:- compute the following price elasticities of demand

Law of diminshing marginal utility, MUa/MUb how it happens? and why this o...

MUa/MUb how it happens? and why this occur?

External cost or external benefit, Explain externality, how can government ...

Explain externality, how can government intervene to achieve allocative efficiency in case of external cost or external benefit? Answer The term externalities refers to bot

Stockholders and managers, Normal 0 false false false E...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 1. Suppose that the

What is the concept of the development, What is the concept of the developm...

What is the concept of the development? The concept of the development: Development is a complicated multi-dimensional concept to do along with enhancements in the human

Survey methods, Survey Methods: The most direct method of forecasting dema...

Survey Methods: The most direct method of forecasting demand in the short run is survey method. Surveys are conducted to collect information about future purchase plans of the

Marginal output, If the marginal product of labor is 45 units of output and...

If the marginal product of labor is 45 units of output and the marginal products of capital is 56 units of output while the wage rate is $20 per worker and the cost of capital is $

Private, Question: (a) Using an example, differentiate between private...

Question: (a) Using an example, differentiate between private, social and external costs and benefits. (b) With the use of a diagram, describe the difference between profi

Quasi rent theory, explaination of quasi rent theory

explaination of quasi rent theory

Supply/demand/cost curves, given short run total cost curve :10q^2+4q=100 a...

given short run total cost curve :10q^2+4q=100 and short run marginal cost MC=20q+4 and market demand Q=100-p what''s the equation of the short run supply curve?

What are accounting costs and economic costs, It is necessary for the prope...

It is necessary for the proper understanding of the price theory to know the various concepts of cost that are often employed. When an entrepreneur undertakes production of a commo

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd