Select a product or service and discuss your subjective estimate of its price elasticity of demand....
Select a product or service and discuss your subjective estimate of its price elasticity of demand. Is it highly elastic or inelastic, unitary elastic, etc.?
Does it matter if you select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general?
What is the relationship between price elasticity and the effect on total revenue if the price of your product or service goes up or down?
Homework Answers
ANSWER:
- I choose basic SALT since it is necessary for all, therefore, it has less elastic demand.
- Yes, it matters if we select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general due to their market demand and their price elasticity.
- If price elasticity is greater than 1 then Total Revenue and Price has an inverse relationship and If price elasticity is less than 1 then Total Revenue and Price has a direct relationship.
NOTE:Please rate positive if the answer was useful....
Add Answer to:
Select a product or service and discuss your subjective estimate
of its price elasticity of demand....
An increase in the price of a small town newspaper from $.70 to $.90 results in...
An increase in the price of a small town newspaper from $.70 to $.90 results in a decrease in sales from 2,880 to 1,920 per day. The price elasticity of demand coefficient (using the midpoint formula is for this newspaper. a. 0.25 b. 0.625 c. 1.4 d. 1.6 At a typical store, there are dozens of choices on the breakfast cereal aisle. Therefore, the demand for Cheerios is expected to be: price-elastic since consumers can switch to corn flakes or...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result in changes...
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b....
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b. how responsive sales are to changes in the price of a related good. c. how responsive the quantity demanded is to a change in price. d. how responsive sales are to a change in buyers' incomes. 2. Suppose the value of the price elasticity of demand is -3. This implies that, a. a 1 percent increase in the price of the good causes the...
In Pioneer Ville, the price elasticity of demand for bus rides is 0.8, the income elasticity...
In Pioneer Ville, the price elasticity of demand for bus rides is 0.8, the income elasticity of bus rides is -1.2 and cross price elasticity of demand for bus rides with respect to gasoline is 1.1. a) Is the demand for bus rides elastic or inelastic? Why? b) Would an increase in the price of bus rides increase the bus companys total revenue? Explain your answer. c) If incomes increase by 5 percent with no change in prices, how will...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
a Yahoo K 5 DF Discussion Forum 1. What is meant by "price elasticity" of demand? Suppose the price elastic...
a Yahoo K 5 DF Discussion Forum 1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for Newspapers is estimated to be 3. What does this mean in term of responsiveness of demand? Discuss 2. You are on the manager of Bronx Zoo with the responsibility to decrease annual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits wak: a....
An increase in the price of a small town newspaper from $.70 to $.90 results in a decrease in sales from 2,880 to 1,920 per day. The price elasticity of demand coefficient (using the midpoint formula is for this newspaper. a. 0.25 b. 0.625 c. 1.4 d. 1.6 At a typical store, there are dozens of choices on the breakfast cereal aisle. Therefore, the demand for Cheerios is expected to be: price-elastic since consumers can switch to corn flakes or...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b. how responsive sales are to changes in the price of a related good. c. how responsive the quantity demanded is to a change in price. d. how responsive sales are to a change in buyers' incomes. 2. Suppose the value of the price elasticity of demand is -3. This implies that, a. a 1 percent increase in the price of the good causes the...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
a Yahoo K 5 DF Discussion Forum 1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for Newspapers is estimated to be 3. What does this mean in term of responsiveness of demand? Discuss 2. You are on the manager of Bronx Zoo with the responsibility to decrease annual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits wak: a....
Most questions answered within 3 hours.
-
You are interested looking at whether there is a relationship
between the sex of dogs and...
asked 5 minutes ago -
The element copper crystallizes in face centered cubic structure
with a density of 8.89 g/cm3. Calculate...
asked 9 minutes ago -
What is the difference between education and indoctrination? Is
there an ethical dimension to this issue?...
asked 8 minutes ago -
A 9.00-kg block of ice, released from rest at the top of a
1.44-m-long frictionless ramp,...
asked 10 minutes ago -
a random sample of 100 us individuals were selected from a
population. the probability of having...
asked 20 minutes ago -
Write a java program to encrypt and decrypt a message. The user
should be able to...
asked 40 minutes ago -
Part A
Part complete
Calculate the voltage required to accelerate a beam of protons
initially at...
asked 42 minutes ago -
An electron (mass 9.11e-31 kg) moving perpendicular to a
magnetic field of 3.2e-2 T movies in...
asked 30 minutes ago -
Please do a flowchart which will be on the computer not on paper
so i can...
asked 34 minutes ago -
Benson ProSystems needs a new signal conditioner module for a
large process control system it is...
asked 41 minutes ago -
USE THE PYTHON ONLY
write a Python program to
compute and print a professional investment report....
asked 41 minutes ago -
Use the concepts of the strong nuclear force, binding energy and
mass defect to briefly explain...
asked 51 minutes ago