An end-of-aisle price promotion changes the price elasticity of a good from -4 to -5. Suppose the normal price is $48, which equates marginal revenue with marginal cost at the initial elasticity of -4. What should the promotional price be when the elasticity changes to -5? (Hint: In other words, what price will equate marginal revenue and marginal cost?) $45.00 O $27.00 O $36.00 O $31.50
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- An end-of-aisle price promotion changes the price elasticity of a good from -4 to -5. Suppose the normal price is $48, which equates marginal revenue with marginal cost at the initial elasticity of -4. What should the promotional price be when the elasticity changes to -5? (Hint: In other words, what price will equate marginal revenue and marginal cost?) O $27.00 O $45.00 O $36.00 O $31.50On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. 1280 1200 Total Revenue 1120 - 1040 980 880 800 720 640 560 o15 30 45 60 75 90 105 120 135 150 165 180 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 $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)A golf practice range raised its quantity demanded of Callaway golf balls from 10 to 15 cases per month when the price fell from $21 to $17 per case of 12. Using the midpoint method, the range's price elasticity of demand for the Callaway balls is O -0.80 O 0.40 O 0.90 O -1.25 O -1.9
- If the demand curve for a good is vertical, the price elasticity of demand will be equal to O 1. 0 0. O infinity. greater than 1 but less than infinity.In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from $21 to $15. The company expected the price cut to boost the quantity of CDs sold by 30 percent, other things remaining the same. What was Universal Music’s estimate of the price elasticity of demand for CDs? If you were making the pricing decision at Universal Music, what would be your pricing decision? Explain your decision.Typed and correct answer please. I ll rateIf elasticity of demand coefficient is 0.2 for some good, it is predicted that if the price rises by 10%: O the quantity demanded (Qd) will fall by 2% O the quantity demanded (Qd) will stay the same O the quantity demanded (Qd) will rise by 20% O the quantity demanded (Qd) will fall by 20%
- If the price elasticity of demand for coffee is -0.5 and Starbuck's is expecting a 10% increase in price, then what will be the new quantity demanded if it's currently 100 cups/hour. 95 cups/hour O 105 cups/hour 80 cups/hour O 120 cups/hourYou sell two different goods: printers and toner catridges. The prices elasticity od demand for the printers is -3.4, and you earn a revenue of RM 15,000 per month from the good. You earn a revenue of RM 5,000 per month from the toner cartriges. The cross price elasticity od demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenue for both of the goods.When the West Coast Surfboard Company lowered the price of surfboards by 10 percent, it sold 20 percent more surfboards. What is the price elasticity coefficient for surfboards? 0.5 1 O 20
- A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is -4.0 and the cross-price elasticity of demand between Y and X is 2.0, then a 2 percent decrease in the price of X will: decrease total revenues from X and Y by $200. O leave total revenues from X and Y unchanged. increase total revenues from X and Y by $520. decrease total revenues for X and Y by $600.The quantity demanded of a product rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately O a. 4.0 Q b. 0.16 O c. 2.5 O d. 1.0At the current price $9.36 each, the elasticity of demand for a a new digital album is given by 7 = -1.58, which of the following is true? a) To increase revenue, the price should be increased. O b) To increase revenue, the price should be decreased. O c) If the price of the digital album is raised to $11.42, revenue will increase. o d) If the price of the digital album is raised to $11.42, revenue won't change.