Answered: (a) The reason firm's use non-linear…

(a) The reason firm's use non-linear pricing is to increase the firm's sales increase the firm's revenue change the consumer's preferences o reduce the firm's costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(a) The reason firm's use non-linear pricing is to
increase the firm's sales
increase the firm's revenue
change the consumer's preferences
o reduce the firm's costs

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Explain the elasticity and total revenue with the help of graph?please answer with the help of graphs
Suppose a local supermarket runs a discount campaign on the sales of shampoos using discount coupons - any customer who shows a discount coupon will be offered an X% discount on the original retail price. a. Suppose the supermarket estimates that coupon users have a demand elasticity of -4 while non-coupon users will have a demand elasticity of -2.5. What should be the value for “X"? Explain with calculations. Be step-by- step. (Hint: Take the ratio between the prices for coupon and non-coupon users.) b. Discuss TWO practical limitations for the supermarket to conduct this discount campaign
6. Elasticity and total revenue I The following graph shows the daily demand curve for bippitybops in Halifax. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be scored on any changes made to this graph. 300 275 250 Total Revenue 225 200 175 + 150 125 100 75 50 25 Demand 3 6. 12 15 18 21 24 27 30 33 36 QUANTITY (Bippitybops per day) PRICE (Dollars per bippitybop)
Please help answer the following questions
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Price of Good X(Px) Quantity of Good X(Qx) Own Price Elasticity Total Revenue 0 100 0.00 0 5 90 −0.11 450 A 80 −0.25 800 15 70 −0.43 1050 20 60 −0.67 1200 25 50 C 1250 30 B −1.50 1200 35 30 −2.33 1050 40 20 −4.00 D 45 10 −9.00 450 50 0 −∞ 0 The demand function in the accompanying table is QXd = 100 − 2PX. Based on this information, compute the own price elasticity of demand when PX = $25 (point C).
5. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Miami. . Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 A 175 150 125 100 75 50 25 Demand 10 15 20 25 30 35 40 45 50 55 60 QUANTITY (Bikes) On the folowing graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. 5300 4500 Total Revenue 4500 400 W 3700 3300 2900 2500 2100 1700 25 50 75 100 125 150 175 200 225 250 275 300 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of bikes is currently $100 per bike, shown as point B on the initial graph. Because the demand between points A and B is va $25-per-bike increase in price will lead to v in…
How do I calculate the price elasticity in this chart? and how do I graph the results? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16
Please see below. The pictures go together.
How do I get the price elasticity number?? and how do I graph it? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16