LawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of...
LawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand at -3.1 at this price. LawnTech is thinking about raising its price by +5.0%. By what percent will Quantity sold change, given this change in price? Report your answer as a percent. Report 25.5%, for example, as "25.5". Remember to report the sign of the change. Rounding: tenth of a percent.
Homework Answers
Price elasticity of demand
=
Percentage of change in quantity of demand ÷ percentage of change in price
=> Percentage of change in quantity of demand ÷ 5 = -3.1
=> Percentage of change in quantity of demand = -15.5
Interpretation:
This means an increase in 5% of price results a decrease in demand quantity of 15.5%
Add Answer to:
LawnTech sells its laser hedge trimmer at a price of $275, and
estimates price elasticity of...
LawnTech sells its sonic gopher repeller at a price of $380, and estimates price elasticity of...
LawnTech sells its sonic gopher repeller at a price of $380, and estimates price elasticity of demand at -2.6 at this price. At that price, LawnTech sells 35,000 units per year. LawnTech is thinking about cutting its price by -3.5%. How many MORE units can LawnTech expect to sell at the new price? Rounding: tenth of a unit.
7. A firm is considering raising its price by 9 percent and has hired an econometrician...
7. A firm is considering raising its price by 9 percent and has hired an econometrician to estimate the elasticity of demand for its product. The econometrician estimates the parameters of a log-liner demand function and reports that the parameter estimate for the elasticity of demand is -1.5 and the standard error of the estimate is 0.3. a. If the firm raises its price by 9 percent, what is the expected change in quantity demanded? b. Approximate the upper and...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
Suppose the own price elasticity of demand for good X is -5, its income elasticity is...
Suppose the own price elasticity of demand for good X is -5, its income elasticity is 1, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 4. Determine how much the consumption of this good will change if. Instructions: Enter your responses as percentages. Include a minus () sign for all negative answers. a. The price of good X decreases by 5 percent. b. The price of good Yincreases by 8 percent. c. Advertising decreases by...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. points a. The price of good X decreases by 5 percent. O percent eBook b. The price of good Yincreases...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: 9.16 points Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. a. The price of good X decreases by 5 percent. 15 percent b. The price of good...
If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95,...
If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95, how will the prospect of an economic bust (expected to decrease consumers' incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by percent.
The price elasticity of demand is equal to the percentage change in price divided by the percentage change...
The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.2,...
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.2, how will the prospect of an economic bust (expected to decrease consumers’ incomes by 2 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by how much percent?
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...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. points a. The price of good X decreases by 5 percent. O percent eBook b. The price of good Yincreases...
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: 9.16 points Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. a. The price of good X decreases by 5 percent. 15 percent b. The price of good...
If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95, how will the prospect of an economic bust (expected to decrease consumers' incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by percent.
The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...
Most questions answered within 3 hours.
-
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 5 minutes ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 5 minutes ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 11 minutes ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 19 minutes ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 14 minutes ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 15 minutes ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 19 minutes ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 18 minutes ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 38 minutes ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 40 minutes ago -
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 58 minutes ago -
The equation for the reaction of nitrogen and oxygen to form
nitrogen oxide is written as...
asked 1 hour ago