An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3 . Suppose the normal price is$26, revenue with marginal cost at the initial elasticity of -2 . What should the promotional price be when the elasticity changes to -3 ? (Hint: In other words, what price will equatemcost?)$11.70 $15,60 $13.6 $19.50

Demand for carpet cleaner rentals at a rental store is described by the equation: Q = 4,000 - 500P, where Q denoted the number of carpet cleaner rental per week and P is the rental price in dollars. Determine the point price elasticity of demand at (1) P = $3 and (2) P = $4.5 and (3) comment on the change in elasticity. (4) Ignoring the previous parts, what is the appropriate price to set in order to maximize profit for a good with a marginal cost of $35 and a demand elasticity of -2?

The demand curve for a product is given by; Qxd = 1,200 - 3Px - 0.1Pz , where Pz = K300. a) What is the own price elasticity of demand when Px = K140? b) Is demand elastic or inelastic at this price? c)  What would happen to the firm’s revenue if it decided to charge a price below K140?

The price elasticity of demand for soft drinks is -1.6.  SK Jaleel sells 500,000 cases of 250ml soft drink at a price of $60 per case. Sollo sells 380,000 cases at the same price point, but decides to implement a 5% price cut to increase their sales.   The impact is felt by SK Jaleel as their product demand drops by 20%. What price adjustment is necessary by SK Jaleel in order to have a production level of 450,000 cases? a.Drop price by $5.68 per case b.Drop price by $2.95 per case c.Drop price by $3.34 per case d.Drop price by $3.87 per case e.Drop price by $4.26 per case