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What good or service does the firm sell. Is the price elasticity of demand elastic or inelastic for that good or service. How should the firm alter the price of the good or service to increase reve
Always Round Tire finds that their demand curve is: P = 50 - .02 Q. What price and quantity will maximize revenue What are the total revenue and price elasticity at this point.
If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
If the elasticity of U.S. exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate.
determine the price they need to charge. Company A estimates that the price elasticity is -2.0 in the price quantity range.
Suppose that the Tennessee Titans' owner, Bud Adams, is considering a plan in which fans who donate blood get a $20 reduction in their ticket price.
Suppose your elasticity of demand for your parking lot spaces is -0.5, and price is $20 per day. If your MC is zero, and your capacity at 9 A.M. is 96% full over last month, are you optimizing?
Why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand.
Explain the steps involved in pricing the television units in order to maximize total revenue. Use diagrams to explain your answer.
Once filled, the politically undesirable task of what to do with new garbage comes to the fore. Should it be shipped out of the region, angering those who are the recipients.
how many popsicles will be sold each day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each.
What is the potential overall market size for supercomputers if the point price elasticity of demand calculated in part A is a good estimate of the relevant arc price elasticity.
How many guitars will be sold after tax is imposed. How much consumer surplus do consumers get after the tax. What is the dead weight loss created by tax.
If the manager wants to increase his sales of Tall Caramel Macchiato by 6%, in what direction and by how much does he need to change the price.
Give examples of how each industry practices price discrimination. What are the short and long term strategic reasons these industries employ tiered pricing.
Given a price elasticity of demand of -2, determine a new price which will cause sales of corn to rise from 250 to 500 bushels per week.
What would happen to the demand for iPhones if consumer income rises by 10%. Be specific. Are iPhones a normal or an inferior good.
Compute the arc price elasticity of demand over this price and consumption quantity range.
What are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
Quantity demanded of widgets went from 10 to 9 units per capita, even though the price of widgets and other products did not change. What is the income elasticity of demand for widgets (using the mid
What can you say about the elasticity of the demand curve that faces the product (or service) produced by an organization. How much control might an organization have over pricing based on a produc
Calculate the own price elasticity for hamburger. If price were to decrease by 1% would the total revenue for hamburger increase or decrease. Explain.
What is the advertising elasticity at the sales price of $2 assuming the stated advertising budget. How useful is this demand equation for forecasting demand for the pill slicer in the next five years
Given the price elasticity of demand for your product is 0.85, your marginal cost is 50 when you produce 1000 units, use the Lerner Index to calculate your price mark-up. What is your optimal price