When the price of a kettle increases from OMR 15 to OMR 20, the quantity demandeddrops from 3550 units to 2500 units. Calculate the elasticity of demand and comment onthe degree of elasticity.A hotel that produces 300 pizzas has a variable cost of OMR 100 and a fixed cost ofOMR 150. Calculate the total cost, average total cost, average variable cost, and averagefixed cost of the bakery.

"As these are two separate questions, so according to the guidelines answer is provided to the first…

Answered: When the price of a kettle increases…

When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on the degree of elasticity.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.2CE

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Question

When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded
drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on
the degree of elasticity.
A hotel that produces 300 pizzas has a variable cost of OMR 100 and a fixed cost of
OMR 150. Calculate the total cost, average total cost, average variable cost, and average
fixed cost of the bakery.

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