You are the manager of a firm that receives revenues of $20,000
per year from product X and $100,000 per year from product
Y. The own price elasticity of demand for product
X is -2, and the cross-price elasticity of demand between
product Y and X is -1.6.
How much will your firm's total revenues (revenues from both
products) change if you increase the price of good X by 1
percent?
Instructions: Enter your response rounded to the
nearest dollar. Use a negative sign (-) if applicable
You are the manager of a firm that receives revenues of $20,000 per year from product...
6. You áre the manager of a firm that receives revenues of $30,000 per year from product Xand $70,000 per year from product Y. The own price elasticity of demand for product Xis -2.5, and the cross-price elasticity of demand between product Yand Xis 1.1. How much will your firm's total revenues (revenues from both products) change if you increase the price of good Xby 1 percent?
suppose a firm produces x and y, the firm earns revenues from x=$50000 and revenues from y equal to $ 30000. the own price elasticity of demand for x is -2 and the cross price elasticity of demand between x and y is -0.6. if the firm lowers the price of product x by 1%, the change in the total revenues will be $?
The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300. a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140? Instruction: Enter your response rounded to two decimal places. Own price elasticity: Demand is: If the firm prices below $140, revenue will: b....
A manager receives the following information from a consumer survey relating to her company’s product. It is estimated that, on average, consumers spend 1% of their annual income on the product. When asked, consumers said that if they had an additional 1,000€ per year to spend they would spend 20€ of it on the product. 1. Based on this piece of information alone, can you come up with an income elasticity figure for the company’s product? (Mark: 1.2) 2. What...
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $20 per unit. a. Express the firm's marginal revenue as a function of its price. Instruction: Enter your response rounded to two decimal places. MR = P b. Determine the profit-maximizing price. Instruction: Use the rounded value calculated above and round your response to two decimal places. $
Chapter 3 Problems Saved Help Save & Exit Submit Check my work 2 The demand curve for a product is given by ox 1200-3Px- 01Pz where P2 $300. a. What is the own price elasticity of demand when Px $140? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $140? 10 points Instruction: Enter your response rounded to two decimal places. eBook Own price elasticity Print...
uppose the demand curve for a product is given by Q = 18 - 2P+1PS where is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.80. Suppose P 5050. The price elasticity of demand is -0.05. (Enter your response rounded to two decimal places) The cross-price elasticity of demand is 0.14. (Enter your response rounded to two decimal places.) Suppose the price of the good, P goes...
3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In P 2 In P, -0.5 In M +InA where P = $15, P, = $6, M $40,000, and A $350. a. Determine the own price elasticity of demand, and state whether demand is b. Determine the cross-price elasticity of demand between good X and good c. Determine the income elasticity of demand, and state whether good X is a d. Determine the own advertising...
An economic consultant for X Corp. recently provided the firm’s marketing manager with this estimate of the demand function for the firm’s product: Q d x = 98 − 4Px + 6Py − 1M where Qd x represents the amount consumed of good X, Px is the price of good X, Py is the price of good Y , and M is income. Suppose good Y sells for $2 per unit and consumer income is $10. (a) Are goods X and Y substitutes...
The demand for company X's product is given by Qx = 12 - 5Px + 4Py. Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a. Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods X and Y substitutes or complements? c. What is the own price elasticity of demand at these prices?