Assessment 5: (Algo) The Bake Shop (TBS) buys and sells cakes. To... LO 1-5 The Bake Shop (TBS) buys and sells cakes. To preserve freshness TBS donates cakes that have not been sold within 5 days to charitable organizations. To avoid waste TBS usually orders fewer cakes than it can sell. Sold out signs are frequently seen in the store. Even so, the cakes come in several flavors and occasionally some of the flavors do not sell out before the 5 day shelf life expires. Cakes cost $16 each to purchase and are sold for $22 each. During the most recent month TBS had customer orders for 28 cakes that could not be filled due to a lack of inventory. There were only 12 cakes that had to be donated to charity during the month. Based on this information the Multiple Choice cost of waste amounted to $264. cost of waste amounted to $448. opportunity cost amounted to $336. opportunity cost amounted to $168. Please show clear working with excel sheet and formulas where possible

Assessment 5: (Algo) The Bake Shop (TBS) buys and sells cakes. To... LO 1-5 The Bake Shop (TBS) buys and sells cakes. To preserve freshness TBS donates cakes that have not been sold within 5 days to charitable organizations. To avoid waste TBS usually orders fewer cakes than it can sell. Sold out signs are frequently seen in the store. Even so, the cakes come in several flavors and occasionally some of the flavors do not sell out before the 5 day shelf life expires. Cakes cost $16 each to purchase and are sold for $22 each. During the most recent month TBS had customer orders for 28 cakes that could not be filled due to a lack of inventory. There were only 12 cakes that had to be donated to charity during the month. Based on this information the Multiple Choice cost of waste amounted to $264. cost of waste amounted to $448. opportunity cost amounted to $336. opportunity cost amounted to $168. Please show clear working with excel sheet and formulas where possible

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you are given the following demand data for a product Price $10 9 8 7 LO 6 O O Quantity Demanded The price elasticity of demand (based on the midpoint formula) when price increases from $7 to $9 Is O 30 40 Multiple Choice O 50 60 70 -.6.3. -1.16. -1.60. -227
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The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown below. Income $4,000 5,000 Quantity Consumed B A с D 45 90 20 0 60 180 10 15 How much is the income elasticity of product A? Select one: O a. 0.22 (normal good) O b. 1.29 (normal and superior good) O c. 9 (superior good) O d. 3 (superior good) O e. -3 (inferior good)
Q.3 (a) No of Units Consumed 1 2 4 6. Total Utility in Units/Utils 10 25 40 60 75 80 Marginal Utility in Units/Utils 15 20 15 (i) State and explain the law illustrated in the above table. (ii) Outline two assumptions underlying this law. lo 3.
If your customers have the following demand curve, what price would maximize your total revenue? What would total revenue be at that price? Price $20 18 16 14 12 10 8 6 4 2 0 2 O $10; $100 O $0; $100 O $20; $200 O $5; $100 4 6 8 10 12 14 16 18 20 Quantity A Moving to another question will save this response. Qu
QUESTION 3 If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals O A. 0.67; AN INFERIOR GOOD OB. 1.5; A LUXURY GOOD O C. 0.67; A NORMAL GOOD O D. 1.5; AN INFERIOR GOOD O E. 1.5; A NORMAL GOOD 4 and clothing is
2. A company has five salespeople and 100 sofas to sell each day. Salespeople get $10 commission for each of the first 15 sofas they sell and $5 commission for each additional sofa after that. Jill is by far the best salesperson, and she usually sells 60 sofas while the other four salespeople sell only 10 each. a) If Jill's coworkers wanted to bribe her into selling only 20 sofas, what is the minimum that they'd have to offer her? b) Assuming that they would split the cost of the bribe equally, would they be willing to offer this bribe? If so, how much does each coworker gain if Jill accepts? c) What is the maximum bribe that they would be willing to make?
Demand: Thinking Like a Buyer End of Chapter Problem Uber Eats, a food delivery service, has recently expanded to your area. The accompanying table contains the number of deliveries per month that you demand at various delivery prices. a. Use this information to plot your individual demand curve. Drag each point on the graph to the point that corresponds with the information presented in the table. Price ($) 14 13 12 11 10 9 8 7 6 LO 5 4 3 2 Price Individual demand $10 $7 $5 $4 $2 $1 Deliveries (meals per month) 2 4 5 8 10 12
4. Suppose there are two firms selling mobile phones along Luthuli Avenue. Firm 1 sells high quality phones. It cost firm 1 Kshs. 10,000 to buy an average phone. Firm 2 sells low quality phones. It costs firm 2 an average of 6,000 to buy its phones. Consumers will on average be willing to pay 14,000 for high quality phones and 10, 000 for low quality phones. The cost of warranty for the high cost seller is 200t while the cost of warranty for the low cost seller is 1200t where t is the warranty year. i) Which firm would want to signal quality of its phone? Explain What t should the high quality seller set to prevent the low quality seller from matching his offer? ii)
Suppose you observe the price and quantity demanded of a good at two dates. There is a large percentage change in price but only a small percentage change in quantity. Which is the most likely price elasticity of demand? O 1.5 O 1 O 0.5
An elasticity of 1.5 means that a 1% change in price will lead to a % change in quantity demanded. 0.5 O 3.0 1.0 O 15 O 1.5 siven a straight line demand curve, an entrepreneur can lower the price of a product to increase evenues until O price elasticity goes negative O price elasticity is elastic price elasticity is greater than 1 O price elasticity is unit elastic Statement I: A perfectly inelastic demand curve and a perfectly elastic supply curve are represented the same way on a graph. Statement Il: A perfectly elastic demand curve and a perfectly elastic supply curve are represented the şame way on a graph. O Statement II is true and statement I is false. O Both statements are false. O Both statements are true. O Statement I is true and statement II is false.
16. What are benefits from learning elasticity? know how much quantity supply change due to price changes knowing how much quantity demand change due to price changes making decision on price strategies of that particular products All above are correct O อื่นๆ: 17. how elasticity can be calculated? total change in quantity over the change in price percentage change in quantity over the percentage change in price O percentage change in price over the percentage change in quantity total change in price over the change in quantity