ABC Cosmetic is going to launch a new special cleansing cream for men. It has a constant marginal cost of $30 and the estimated price elasticity of demand is –4/3. What price should ABC Cosmetic charge for the cream? Show your calculation

Q: A local coffee house is considering increasing the price on a cup of coffee from $1.59 to $1.89 per…

A: Given information, Initial price: $1.59 Final price: $1.89 Initial quantity demanded: 350 Final…

Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80…

A: The price elasticity of demand for a product is 2.5.The price reduces from $2.00 to $1.80.

Q: over the last month, are they optimizing? Justify your answer.  Show solution.

A: Given : Elasticity of demand=-2 Price per day=160 MC=0 Parking lot capacity=75%

Q: Suppose a gelato shop increases its prices by 5 percent and sees a resulting 10 percent decrease in…

A: price elasticity can be defined as change in demand due to the change in price here we calculate the…

Q: Calculate the markup price if MC = $10 and price elasticity equals -2.

A: Mark-up will be computed as difference between the item's selling price and the cost as a percentage…

Q: Estimates of price elasticity typically range between -0.1 and -.75 with hospital services at the…

A: Inelastic demand refers to the price elasticity od demand where the quantity demanded changes by a…

Q: If price elasticity of supply is +0.66  Find the value of change in quantity supplied if change in…

A: The information being given is as follows:- Price elasticity of supply = 0.66 Change in price = 33%…

Q: (b) Derby County Football Club has found that the price elasticity of demand for their tickets is…

A: The responsiveness of demand to change with its price is measured by the price elasticity of demand.…

Q: Mountain Dew is 4.4

A: Pepsi sells many types of soft drinks and its researchers found that the demand elasticity for…

Q: If a bottle of Ms. Dior perfume currently sells for $49.99 per bottle, a decrease in price to $42.99…

A: The perfectly elastic demand would mean when the quantity demand changes drastically when the price…

Q: A heart surgeon starts with an initial price of $3,000 and reduces price to $2000. In response,…

A: Price elasticity of demand measures the responsivness of change in quantity demand to change in…

Q: What kind of demand exists for “Salt”. Draw a demand schedule and demand  curve by taking any five…

A: The law of demand states that there is a negative relationship between the price and quantity…

Q: Pharmaceutical firms charge different prices in different countries after because Government…

A: Government regulations are the rules and policies that the government of the country imposes in…

Q: The elasticity of demand for a firm's product is -4 and its advertising elasticity of demand is…

A: Elasticity The degree to which individuals, consumers, or producers adjust their demand or the…

Q: The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: y Petbarn is currently trading in a market where they face an own-price elasticity of demand which…

A: Optimal price can be described as the point of price at which a firm can maximize its profits or…

Q: Suppose the elasticity of demand for the parking lot spaces at Hero Academia is -2 and price is 160…

A: Elasticity of demand: It refers to the change in the demand for goods and services due to the change…

Q: Boogie Fever is considering charging an $8 entry fee for its patrons to enter its bar in Ferndale,…

A: The answer is option (A).

Q: Find elasticity of demand if price rise by 40% and quantity falls by 10% (b) Is the demand elastic…

A: We are given that:- Rise in price = 40%  Fall in quantity = 10% We need to calculate the elasticity…

Q: Recently, in Beijing, the price of Quduoduo cookies fell from $0.80 to $0.70. As a result, the…

A: The value of elasticity of demand being negative showing that as a result of decrease in price the…

Q: In a local market the monthly price of internet access decreases from $25 to $15, and the total…

A: Price elasticity of demand refers to the degree of responsiveness to change in quantity demanded due…

Q: Find the point advertising elasticity of demand of a medical supplier if the business spent 10,000…

A: Ed = Percentage change in sales/Percentage change in money spent on advertising

Q: Suppose price of a commodity rises by 10% , then supply by a firm increases by 50%  Calculate…

A: # The elasticity of supply is a measure of the change in quantity supplied due to change in price.…

Q: Assume that the Morgantown Pizza is the exclusive destination for pizzas for WVU students. In other…

A: Price elasticity of demand is a measure of the change in quantity demanded of a good or service to…

Q: thought for part (a) the Q will equal to 166. and for part (b) isnt the price elasticity equal to…

A: Price elasticity of demand measures the degree of responsiveness of the change in quantity demanded…

Q: The cross - price elasticity of demand between Texaco gasoline and Mobil gasoline sold at the same…

A: The issue is to determine the cross-price elasticity of demand between Texaco gas and Mobil fuel…

Q: Calculate the optimal markup price if MC = S10.00 and price elasticity = -1.7. %3D $5.88 $24.27…

A: P = MC (1/(1 + 1/e))

Q: Why is price stability difficult to achieve inonline and global marketing?

A: Our economy performs best when prices are stable. That means we must guard against either too low or…

Q: Suppose the elasticity of demand for the parking lot spaces at Hakdog Company is -2 and price is 160…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for…

A: The marginal cost is the cost of producing an additional unit.  Price Elasticity measures the…

Q: A seller believes he is pricing optimally. Her current unit margin rate is 80 percent. What must the…

A: Price elasticity of demand is a measure of how sensitive the quantity demanded of a product or…

Q: the demand function for Netflixis ()(pD), where (p) is the price in dollars. For their “Basic” plan,…

A: Hey, Thank you for the question. As per our honor, code we can answer only first three sub-parts of…

Q: What is price discrimination?  Explain how the theories of elasticity, if used, can help suppliers…

A: Price discrimination is a selling technique that charges clients various price for a similar item or…

Q: Elasticity of demand of -0.4 means inelastic demand True/False

A: Elasticity of demand = -0.4  Elasticity of demand measures percentage change in the quantity…

Q: A firm sales 1000 units of a product at a price of $10 per unit. It's price elasticity of supply is…

A: Given information: Total sales unit = 1000 units Price per unit = $10 per unit The elasticity of…

Q: If the demand for In-N-Out Burger is log(Q) = a – b log(P) and if the demand is elastic what can you…

A: Elasticity is the measure of percentage change in quantity due to percentage change in price.  The…

Q: The  elasticity  of  demand  for  energy-  ‘Electricity,  and  Gas’-  is  relatively  price…

A: Goods whose demand cannot be postponed are inelastic .Since necessity goods demand cannot be…

Q: An international airline in Ghana ,Emirates ,estimates that the price elasticity of demand for…

A: The price elasticity of demand measures the responsiveness of quantity demanded to a change in…