You are the only seller of eggs In town, and the price-elasticity coefficient for eggs is known to be 2. If you want to Increase your sales quantity by 5 percent through a price change, what should you do to the price? Multiple Cholce reduce price by 25 percent Increase price by 2.5 percent reduce price by 10 percent Increase price by 10 percent

You are the only seller of eggs In town, and the price-elasticity coefficient for eggs is known to be 2. If you want to Increase your sales quantity by 5 percent through a price change, what should you do to the price? Multiple Cholce reduce price by 25 percent Increase price by 2.5 percent reduce price by 10 percent Increase price by 10 percent

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 7MC

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Isabella always spends $50 on red roses each month and simply adjusts the quantity she purchases as the price changes. What can you say about Isabella's elasticity of demand for roses?
You have just opened a new grocery store. Every item you carry is generic (generic beer, genericbread, generic chicken, etc.). You recently read an article in the Wall Street Journal reporting thatthe price of recreation is expected to increase by 15 percent and cross price elasticity is 0.15. will this affect your store’s salesof generic food products?
In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from $21 to $15. The company expected the price cut to boost the quantity of CDs sold by 30 percent, other things remaining the same. What was Universal Music’s estimate of the price elasticity of demand for CDs? If you were making the pricing decision at Universal Music, what would be your pricing decision? Explain your decision.Typed and correct answer please. I ll rate
Assume that you own a local brewery and that you sell 12 packs of your beer for $10 each. You hire a consultant to help you improve your business and she shows you that the price elasticity for your beer is 0.85. If your goal is to maximize your income/revenue, what should you do? 2. You run a hotel and you have determined that if you lower the price of your rooms 15% you will be able to rent 20% more rooms each month a.What is your price elasticity of demand for hotel rooms? b. If you want to maximize your revenue from renting out hotel rooms, what, if any changes should you make to the price? 3. Which product likely has a more in elastic demand, a movie ticket or lifesaving medication? Why? 4. If new substitutes are developed for a product, what will likely happen to the demand curve for that product? 5. If new substitutes are developed for a product, what will likely happen to the total revenue maximizing price for that product?
Choose a product which you are familiar with. Using the internet for research (please cite your source), what is the price elasticity of demand for this product or group of products? What does that mean with respect to a 10% increase in the price of this good? What happens to quantity demanded? Which of the 4 determinants of price elasticity of demand do you believe drives this outcome about the good's price elasticity? If there is more than one determining factor, please explain your reasoning. [for many goods, all of the 4 determinants come into play - I just want you to choose the one or two that you believe are most relevant).
How do you respond to the price elasticity
The price elasticity of supply of baking flour is 0.8 when there is an increase of price from RM16 to RM18 per kilogram. How many percent change of suppliers that supply baking flour in the market with the new price?
Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
you sell twi different goods : printer and toner catridges. the price elasticity of demand for the printer is -3.4, and you earn a revenue of Rm15000 per month from the good. you earn a revenue of Rm5000 per month from the toner catridges. the cross price elasticity of demand for both of the goods is -2.5. if you decide to decrease the price of the printer by 5%, calculate your new total revenue for both of the goods.
What can you tell about price elasticity
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.4, how will the prospect of an economic boom (expected to increase consumers’ incomes by 3 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.
24. The seafood restaurant you manage has daily specials. You have observed that the fresh salmon is overstocked and you want to increase salmon sales by 30%. You know the price elasticity of demand for salmon is -1.2. How much (and in what direction) should you change salmon prices to increase sales by 30%? Will this increase or decrease total salmon revenue? How do you know? You also know that fresh salmon and fresh tuna have a cross price elasticity of +.5. With the percentage decrease in salmon prices calculated above, how much more/less fresh tuna will you sell? Are salmon and tuna complements or substitutes at your restaurant?