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how much should the store charge for each rental if it engages in optimal two-part pricing?
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- If bus travel is an inferior good, its income elasticity of demand is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.You are the marketing manager of a farm. How will you transform itsprice elastic products, such as carrots and potatoes, into price inelasticproducts in order to gain more profit margins?George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?
- What does the elasticity of demand for luxuries tend to be? greater than 1 greater than 0 but less than 0.5 less than 1 equal to 0 equal to 1 exactly 0.5George has been selling 7,000 T-shirts per month for $7.00. When he increased the price to $9.00, he sold only 6,000 T-shirts. Which of the following best approximates the price elasticity of demand? -0.6769 -0.6154 -0.3077 -0.5538 Suppose George's marginal cost is $4 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price wasSuppose the demand curve for oPad is P = 500-QD 10 where P is the price of oPad and QD is the quantity of oPad. What is the price elasticity of demand when the price is $30? (Please keep 1 decimal place in your answer)
- Calculate the markup price if MC = $10 and price elasticity equals -2.The supermarket is selling 2,000 containers of margarine a week at $2.50 each. You know that the own price elasticity of demand for margarine is -0.8. If the supermarket decides to reduce the price by 10%, how many more margarines would the supermarket be selling that week? Show your work.Yana initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service?
- Demand for Corn Flakes is: P = 24- Q. Supply of Kellogg's Corn Flakes is: P = 2+ Q. Now a generic company enters the market, selling geneen Corn Flakes for $7. Assume consumers are indifferent between generic and Kellogg's Cororlakes. How many boxes of Kellogg's (brand) Corn Flakes will sell? Enter as a value.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?Jeong's uncompensated demand for gizmos is given by Q = 30 - 2p. Jeong's inverse demand function is 15-0.5Q 30-2Q -2 30-2p