Suppose that you are currently charging $10 for your product and selling 10,000 items. Calculate your...
- Suppose that you are currently charging $10 for your product and selling 10,000 items. Calculate your total revenue. If you increase your price to $11, you estimate that you will sell 8,000 units. Calculate your total revenue. Calculate the price elasticity of demand.
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Suppose that you are currently charging $10 for your product
and selling 10,000 items. Calculate your...
Suppose you are a supplier and you are currently charging a price of $60 per unit...
Suppose you are a supplier and you are currently charging a price of $60 per unit for your product. You have estimated that when price = $50, the demand for your product is unit- elastic. If you decrease price to $55. Revenue will increase. Revenue will decrease. Revenue will stay the same. We do not have enough information to answer this question Question 6 10 pts If the income elasticity of demand for "good A" is 2.15, we can conclude...
Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the...
Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the market for flat screen televisions. In 2014, the Seattle Seahawks won the Super Bowl. Draw a supply and demand graph for Seahawk tickets in the following season to show the impact of the Super Bowl win. (It would be the same graph for Seahawks t-shirts or hotdogs and beer at the game.) Suppose that (a) it is reported that coffee helps students retain information and (b)...
Draw a supply and demand graph for the market for air travel. Analyze the impact of an...
Draw a supply and demand graph for the market for air travel. Analyze the impact of an increase in the cost of jet fuel. Be sure to use just one graph, shifting either the demand curve or the supply curve the correct direction. Show the impact on equilibrium price and equilibrium quantity. Draw a supply and demand graph for new cars to show the impact of lower consumer incomes during the 2008-09 recession. Analyze the impact of a decrease in tariffs (taxes) on...
Q2: The demand for a single-price monopolist’s product is Q = 60 – 2P where Q...
Q2: The demand for a single-price monopolist’s product is Q = 60 – 2P where Q is measured in units and P is measured in $/unit. a) At which price is the demand for the monopolist’s product unit elastic? b) At which prices is the demand for the monopolist’s product elastic? c) At which prices is demand for the monopolist’s product inelastic? d) Suppose the monopoly is currently producing and selling 50 units of output. What price must the monopoly...
Currently, demand elasticity for the product you produce is ep= -2 and you sell Q1=10 at...
Currently, demand elasticity for the product you produce is ep= -2 and you sell Q1=10 at P1=8. Your total cost is fixed at $4 per unit produced. A client would like to purchase Q2=15 at a lower price (P2). Compute P2 and determine if it would be profitable to satisfy your client. What range of prices would generate profit for you?
Homework 3 Due July 25, 2018 1. (a) Suppose you are selling a product for $10...
Homework 3 Due July 25, 2018 1. (a) Suppose you are selling a product for $10 per unit in a competitive industry; using the perfectly competitive model, show and explain what your profit will be if you sell 20 units at a cost of $5 per unit. (5 Points) (b) What will you do to maximize profit if your marginal cost falls from $10 to $6? (5 Points) 2. Suppose you decide to manage a monopoly instead. If your demand...
Suppose 1,000 items of a product are sold at a price of $10 each. When the...
Suppose 1,000 items of a product are sold at a price of $10 each. When the price of the product is reduced by $2, the number sold increases to 1,100. What is the price elasticity of demand for this product? Steps on how to solve with calculator!
3)Currently, demand elasticity for the product you produce is ep -2 and you sell QI-10 at...
3)Currently, demand elasticity for the product you produce is ep -2 and you sell QI-10 at Pl-8. Your total cost is fixed at $4 per unit produced. A client would like to purchase 02-15 at a lower price (P2) Compute P2 and determine if it would be profitable to satisty your client. What range of prices would generate profit for you?
You produce Coco cola beverages. You estimate that the price elasticity of demand for your product...
You produce Coco cola beverages. You estimate that the price elasticity of demand for your product is 2.7 (in absolute value). Coco cola currently sells for $2.50 per 20-ounce can. Some legislators are considering placing a $1.00 per can tax on your product. The OWL will be relatively ---------------------------- Tax revenue will be relatively ------------------------------------- Given the price elasticity of demand, your burden of the tax is likely to be relatively -_______________
3. A firm is selling two versions of a product: for one demand is estimated to...
3. A firm is selling two versions of a product: for one demand is estimated to be la = 1,400 – 20 Pa and for the other demand is estimated to be Qe = 1,250 – 25 Pb. a) Determine the point price elasticity for each product if Pa = $40 and Pb = $30. b) Using the mark-up rule, and your answers to part a, determine if the firm is currently charging the optimal price for its two version,...
Suppose you are a supplier and you are currently charging a price of $60 per unit for your product. You have estimated that when price = $50, the demand for your product is unit- elastic. If you decrease price to $55. Revenue will increase. Revenue will decrease. Revenue will stay the same. We do not have enough information to answer this question Question 6 10 pts If the income elasticity of demand for "good A" is 2.15, we can conclude...
Homework 3 Due July 25, 2018 1. (a) Suppose you are selling a product for $10 per unit in a competitive industry; using the perfectly competitive model, show and explain what your profit will be if you sell 20 units at a cost of $5 per unit. (5 Points) (b) What will you do to maximize profit if your marginal cost falls from $10 to $6? (5 Points) 2. Suppose you decide to manage a monopoly instead. If your demand...
3)Currently, demand elasticity for the product you produce is ep -2 and you sell QI-10 at Pl-8. Your total cost is fixed at $4 per unit produced. A client would like to purchase 02-15 at a lower price (P2) Compute P2 and determine if it would be profitable to satisty your client. What range of prices would generate profit for you?
3. A firm is selling two versions of a product: for one demand is estimated to be la = 1,400 – 20 Pa and for the other demand is estimated to be Qe = 1,250 – 25 Pb. a) Determine the point price elasticity for each product if Pa = $40 and Pb = $30. b) Using the mark-up rule, and your answers to part a, determine if the firm is currently charging the optimal price for its two version,...
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