Sarah plays tennis 4 times per month when the fee is $50, and 5 times per month when the fee is $40. What is Sarah’s price elasticity of demand?
Sarah plays tennis 4 times per month when the fee is $50, and 5 times per...
Sarah has been selling 5,000 baseball caps per month at $7.50 each. When she decreased the price to $4.50 she sold 6,000baseball hats. a.What is the demand elasticity? b.If Sarah's marginal cost is $7 per cap, what is her desired markup and what is her initial actual markup? c.Was decreasing the price profitable for Sarah's baseball caps business? Explain.
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost of other types of entertainment-in particular, how much It costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario...
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost ofother types of entertainment-in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena wil demand at each price under three different scenarios. In s also...
5. When the price of chicken is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of chicken rises to $3.00 per pound, 60 pounds of hamburger are purchased. The cross- price elasticity of demand between chicken and hamburger is approximately equal to?
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario...
Q1. Sarah has decided to spend always $200 on clothing per month. Which one of the statements below is true? A. Sarah’s price elasticity of demand is one because she is maintaining her clothing expenditures as a constant fraction of the price. B. Sarah’s income elasticity of demand is equal to zero because her clothing expenditure does not depend on the price. C. Sarah’s income elasticity of demand is infinite because she is willing to spend a huge amount of...
Q1. Sarah has decided to spend always $200 on clothing per month. Which one of the statements below is true? A Sarah's price elasticity of demand is one because she is maintaining her clothing expenditures as a constant fraction of the price. B. Sarah's income elasticity of demand is equal to zero because her clothing expenditure does not depend on the price. c. Sarah's income elasticity of demand is infinite because she is willing to spend a huge amount of...
The price of Fruits in a market is RO 5 per Kg and the demand is 400Kgs. When price decreased to RO 4 per Kg, then the demand changed to 520 Kgs. What will be the price elasticity of demand?
Economics - Pricing Justin has been selling 4,600 T-shirts per month for $6.50. When he increased the price to $7.50 he sold only 4,000 T-shirts. a. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? b. Was raising the price profitable?
At a price of $2.97 a gallon, Joe buys 40 gallons of gas a month. When the price of gas increases to $3.42 a gallon, Joe buys 36 gallons a month. What is his price elasticity of demand for gas?