If a business sees that demand for its product is –SELECT A LABELpopularelasticdecreaseperfectly elasticincreaseinelastic, it makes...
If a business sees that demand for its product is –SELECT A LABELpopularelasticdecreaseperfectly elasticincreaseinelastic, it makes sense to lower the price in order to –SELECT A LABELpopularelasticdecreaseperfectly elasticincreaseinelastic revenue. However, if demand is –SELECT A LABELpopularelasticdecreaseperfectly elasticincreaseinelastic, lowering the price will not increase revenue.
Homework Answers
If the business see that the demand for its product is elastic it makes sense to lower the price in order to increase revenue. However, if the demand is inelastic, lowering the price will not increase revenue.
Explanation: When demand is elastic, lowering price increases revenue and increasing the price lowers revenue. The opposite happens in the case of inelastic demand.
Add Answer to:
If a business sees that demand for its product is –SELECT A
LABELpopularelasticdecreaseperfectly elasticincreaseinelastic, it
makes...
sticity of demand for its ). What happens to Steven's Soup it increases the price of...
sticity of demand for its ). What happens to Steven's Soup it increases the price of its canned soup? b. It falls by 162 percent. es by 1.62 percent. d. It rises. reduce your daily rates by 20 percent. However, y at you own a small boutique hotel. In an attempt to raise revenue you this indicate about the demand for your boutique hotel rooms y rates by 20 percent. However, your revenue falls. What does a. The demand curve...
1. Jaime owns a monopoly business selling sweatshirts. The demand for her product is given by:...
1. Jaime owns a monopoly business selling sweatshirts. The demand for her product is given by: Q = 2000 ‒ 15P. She is currently selling sweatshirts at P = $80. What is the price elasticity of demand when the price is P = $55? You will have to use the point elasticity formula. The price elasticity of demand at this price is ___________ A: -0.7 2. Consider your answer to the previous question. If Jaime wants to increase the revenue...
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?
1. After a careful statistical analysis, the Franklin Company concludes the demand function for its product...
1. After a careful statistical analysis, the Franklin Company concludes the demand function for its product is Q = 16,784 – 232.43P + 0.225M – 895.3PR Where Q is the quantity demanded of its product, P is the price of its product, PRis the price of its rival product, and M is consumers’ per capita disposable income. At present, P = $22.50, PR = $12.50, and M = $43,499. a. What is the price elasticity of demand...
Price Elasticity of Demand: Chippers Cookie Bakery Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Chippers Cookie Bakery 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...
Say a monopolist knew that at the current price for its product demand is inelastic. If...
Say a monopolist knew that at the current price for its product demand is inelastic. If marginal costs for this firm are zero, then in order to maximize profits this monopolist should A increase output. reduce output. keep output at the same level. D decrease its price.
Bell's product manager continues to perform well in the market. However, a competing product is coming...
Bell's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Bell product manager do in order to improve upon the buying criteria, and thus potentially increase demand? Select: 1 Increase MTBF by 2000 Lower the selling price since it is the second most important buying criteria Increase the promotion budget to...
You own a small business and want to increase the total revenue you collect from sales...
You own a small business and want to increase the total revenue you collect from sales of your product. If the demand for your product is inelastic, you should _____________ (increase/decrease/not change) your product's price in order to increase total revenue.
Which of the following will cause the demand for product (A) to decrease? Select one: O...
Which of the following will cause the demand for product (A) to decrease? Select one: O a. an increase in the price of a substitute good (5) O b. an increase in the price of complementary product (C) c. population growth that causes an expansion in the number of persons consuming (A) O d. an increase in money income if (A) is a normal good
Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why,...
Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why, at any price lower than $130, is the marginal revenue from an additional sale less than the price? Table 2 Price Amount Demanded Total Revenue Marginal Revenue $160 0 $0 n/a $130 90 $11,700 $130.00 $100 200 $20,000 $75.45 $80 350 $28,000 $53.33 $40 600 $24,000 -$16.00 $0 850 $0 -$96 .00 Question 5 options: a) Lowering the price means that Media Cable lowers...
sticity of demand for its ). What happens to Steven's Soup it increases the price of its canned soup? b. It falls by 162 percent. es by 1.62 percent. d. It rises. reduce your daily rates by 20 percent. However, y at you own a small boutique hotel. In an attempt to raise revenue you this indicate about the demand for your boutique hotel rooms y rates by 20 percent. However, your revenue falls. What does a. The demand curve...
Say a monopolist knew that at the current price for its product demand is inelastic. If marginal costs for this firm are zero, then in order to maximize profits this monopolist should A increase output. reduce output. keep output at the same level. D decrease its price.
Which of the following will cause the demand for product (A) to decrease? Select one: O a. an increase in the price of a substitute good (5) O b. an increase in the price of complementary product (C) c. population growth that causes an expansion in the number of persons consuming (A) O d. an increase in money income if (A) is a normal good
Most questions answered within 3 hours.
-
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 13 minutes ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 1 hour ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 1 hour ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 2 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 2 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 3 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 4 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 5 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 5 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 5 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 5 hours ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 5 hours ago