ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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1. Suppose you are the economic adviser ofa company producing three brands of mobile pnones;
Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120
units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units of
Nokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing director
proposes an increase in
demanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unit
for which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from
100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 units
Using the mid-polint formula. compute the
From your answer in i, what is the type and economic interpretatiom of each brand's
ii.
value of elasticity.
2. Briefly explain any three key features of a
i Show what happens to a
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