Agatha's Inc. is about to introduce a new product in the market, but is not sure as to how it should price the product. The company is facing intense competition from five other companies. In such a situation, what should be Agatha’s Inc. pricing objective? Provide an explanation for your answer.

Vacations-R-Us.com, the online cruise seller, wants to increase its total revenue. One strategy is to offer a 10% discount on every cruise it sells. Vacations-R-Us.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Volume of sales before the 10% discount group A(sales per week) Group B(sales per week) 1.55 million 1.50 million 1.65 million 1.70 million Volume of sales after the 10% discount a. Using the midpoint method, calculate the price elasticities of demand for group A and B. b. Explain how the discount will affect total revenue from each group.

I pretty sure I got the first part right. I am struggling with bottom parts.

The young expert Hand written solution is not allowed.

The information in the table below shows the demand schedule for water in a certain small town.  Assume the marginal cost of supplying water is constant at $4 per bottle.   Price Quantity (bottles) $9 200 $8 400 $7 600 $6 800 $5 1000 $4 1200 $3 1400 $2 1600   (Note:  You may want to extend this table to generate additional data.  If you do, you need not submit the extended table.)   1. Suppose there is only one supplier of water in this market, what will be its price and quantity for water? (MAKE THE SOLUTIONS READABLE!!!) 2. If there are two suppliers of water in the market (Victor and Sam) and they are able to collude and successfully form a cartel and agree to divide the market evenly, what would be the price of water and what quantity of water will each firm sell? How much profit will each seller earn (show solution)? 3. Suppose the town enacts new antitrust laws that prohibit Victor and Sam from operating as a monopolist.…

Question: Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC-$1. The number of customers in the target population is 10,000. Analyze the challenges that the marketing firm will be facing to evaluate customer demand. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% Tweeners $2 10% Seniors $2 10% Others $0 40%

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Question 26 The economic entity most likely to engage in price gouging is the manufacturer of the product, such as a Honda generator. a national big-box store, such as Target or Walmart. a local, regular supplier of the product. an individual or business who has a supply of the product somewhere else. a local resident who wants to get rid of his or her own product.

1. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p     Qy = 60 - 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker’s neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker’s neighbors.  (a) Plot the private demand curve and private supply curve for both cigarettes on separate axes. (b) What is the privately efficient quantity demand of both cigarettes? (c) Add the public supply curves to the graphs you plot in (a). (d) What is the socially efficient quantity demand of both cigarettes?

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