4). APPLEWATCH (this concentrates on the mathematical part of the readings) (19 Points)a) This question is based on the impact of Lowering the Price of the Apple watch to $312 (note the original price of $349)a. Calculate the Point Price Elasticity of Demand for the Apple Watch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demand—in effect, is it elastic or inelastic and why-you should use the original price and the new price of $312)? (6 Points)b. Calculate new Total Revenue given this price reduction (begin by calculating what was initial total revenue when the price was $349). Note—use the demand function to calculate quantity demanded. (4 Points)c. Given a Variable Cost that is provided on Page 5 of the lecture Powerpoint (and not including the sunk/fixed costs) what is the profit maximizing output given a price of $349? (3 points)b) If Apple kept their price at $349 and Samsun reduced the price of their GearS to $255 - what would be the impact on the demand for the Apple Watch (this uses the original price from the paper and this requires a calculation and a numerical answer)a. Quantity Demanded for the Apple Watch - this requires a calculation (3 Points)b. Now - After Samsung reduced their price to $255, how much would Apple need to reduce their price to retain their market sales (this requires the calculation such that you stay at the same number of sales).(3Points) 4). APPLEWATCH (this concentrates on the mathematicalpart of the readings) (19 Points)a) This question is based on the impact of Lowering the Priceof the Apple watch to $312 (note the original price of $349)a. Calculate the Point Price Elasticity of Demand for theApple Watch (this requires you to show your work,calculate the number and explain the results of thePrice Elasticity of Demand-in effect, is it elastic orinelastic and why-you should use the original priceand the new price of $312)? (6 Points)b. Calculate new Total Revenue given this pricereduction (begin by calculating what was initial totalrevenue when the price was $349). Note-use thedemand function to calculate quantity demanded. (4Points)c. Given a Variable Cost that is provided on Page 5 of thelecture Powerpoint (and not including the sunk/fixedcosts) what is the profit maximizing output given aprice of $349? (3 points)b) If Apple kept their price at $349 and Samsun reduced theprice of their GearS to $255 - what would be the impact onthe demand for the Apple Watch (this uses the originalprice from the paper and this requires a calculation and anumerical answer)a. Quantity Demanded for the Apple Watch - thisrequires a calculation (3 Points)b. Now After Samsung reduced their price to $255,how much would Apple need to reduce their price toretain their market sales (this requires the calculationsuch that you stay at the same number of sales). (3Points)

a)To calculate the Point Price Elasticity of Demand (PED) for the Apple Watch, we use the…

4). APPLEWATCH (this concentrates on the mathematical part of the readings) (19 Points) a) This question is based on the impact of Lowering the Price of the Apple watch to $312 (note the original price of $349) a. Calculate the Point Price Elasticity of Demand for the Apple Watch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demand-in effect, is it elastic or inelastic and why-you should use the original price and the new price of $312)? (6 Points) b. Calculate new Total Revenue given this price reduction (begin by calculating what was initial total revenue when the price was $349). Note-use the demand function to calculate quantity demanded. (4 Points) c. Given a Variable Cost that is provided on Page 5 of the lecture Powerpoint (and not including the sunk/fixed costs) what is the profit maximizing output given a price of $349? (3 points) b) If Apple kept their price at $349 and Samsun reduced the price of their GearS to $255 - what would be the impact on the demand for the Apple Watch (this uses the original price from the paper and this requires a calculation and a numerical answer) a. Quantity Demanded for the Apple Watch - this requires a calculation (3 Points) b. Now After Samsung reduced their price to $255, how much would Apple need to reduce their price to retain their market sales (this requires the calculation such that you stay at the same number of sales). (3 Points)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...

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4). APPLEWATCH (this concentrates on the mathematical part of the readings) (19 Points) a) This question is based on the impact of Lowering the Price of the Apple watch to $312 (note the original price of $349) a. Calculate the Point Price Elasticity of Demand for the Apple Watch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demand—in effect, is it elastic or inelastic and why-you should use the original price and the new price of $312)? (6 Points) b. Calculate new Total Revenue given this price reduction (begin by calculating what was initial total revenue when the price was $349). Note—use the demand function to calculate quantity demanded. (4 Points) c. Given a Variable Cost that is provided on Page 5 of the lecture Powerpoint (and not including the sunk/fixed costs) what is the profit maximizing output given a price of $349? (3 points) b) If Apple kept their price at $349 and Samsun reduced the price of their GearS to $255 - what would be the impact on the demand for the Apple Watch (this uses the original price from the paper and this requires a calculation and a numerical answer) a. Quantity Demanded for the Apple Watch - this requires a calculation (3 Points) b. Now - After Samsung reduced their price to $255, how much would Apple need to reduce their price to retain their market sales (this requires the calculation such that you stay at the same number of sales). (3 Points)

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