The Kowloon Motor Bus (KMB) Company Limited has done a research on the price elasticity of demand for bus service. The following table shows that the price elasticity of demand varies in different timeslots of a day. Timeslots                              Price elasticity of demand7:00 a.m. – 10:00 a.m.                             0.510:00 a.m. – 5:00 p.m.                            1.55:00 p.m. – 8:00 p.m.                              0.78:00 p.m. – 12:00 mid-night                   2.0 Explain the meaning of those numbers of price elasticity of demand, and why the demand for bus service has different levels of price elasticity of demand during different timeslots?

We R' Write has made some changes over the last year, hoping to increase total revenues generated. Specifically, We R' Write increased the price of their pencils and decreased the price of their pens. However, We R' Write has seen total revenues actually go down. Given the information in the table below, complete the following: Calculate the price elasticity of demand for pencils and pens. Interpret the price elasticity of demand for pencils and pens. Indicate if the demand for pencils is price elastic, inelastic, or unit. Indicate if the demand for pens is price elastic, inelastic, or unit. Tell We R' Write if the decision to decrease the price of pencils was correct or not, and why. Tell We R' Write if the decision to increase the price of pens was correct or not, and why. Price Quantity Demanded Item Last Year This Year Last Month This Month Pencils $0.30 $0.25 25,000 62,000 Pens $3.00 $3.50 77,000 30,000

Suppose the local semi-pro baseball team raises the price of their tickets from $15 to $25. Having done so, ticket sales fell from 6,000 to 4,000. Calculate the own price elasticity of demand and   determine if demand for this good is elastic, inelastic, or unitary elastic.

Online the timing and tailoring of prices to specific products is the key to successful pricing in online markets. And " Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online." Assuming a 10 percent decrease in price increases sales by 30 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $0.50 per click and boasts a conversation rate of 5 percent ( an average of 20 percent clicks are needed to generate sale), the incremental cost of each sale is $50. What price should you change for the product? What is the markup? B) . The authors assert that price sensitivity is affected by (1) product cycle, and (2) number of competitors. In fact, " When the number of competing sellers doubles, a firm's elasticity of demand is expected to double ( you should be able to verify this…

Compare and contrast the three types of price elasticity of demand: elastic, inelastic, and unitary elastic. Discuss how businesses can use this knowledge to optimize pricing strategies for different goods and services.

Consider the market for a new DVD​ movie, where the price is initially $8 and 44 copies are sold per day at a​ superstore, as indicated in the figure to the right. The superstore is considering lowering the price to ​$4. ] What is the price elasticity of demand between these two prices (use the Midpoint Formula​)? The price elasticity of demand is nothing. (Enter your response as a real number rounded to two decimal​ places.)

Suppose that when the price of a soft drink rises 10%, the quantity demanded of the soft drink falls 5%. Based on this information, what is the approximate absolute price elasticity of demand for soft drink? 0.05 2.0 0.2 0.5

Suppose the price of apples increased from $2.00 to $3.00 per kg. As a result, the quantity demanded for apples decreased from 5000kg to 4000kg. What is the price elasticity of demand for apples? -1000 -1 -0.5 -0.4

A company named The Mad Hatter decides to increase the price of its hats from $26 to $47 per hat. As a result of this change, the quantity demanded of hats drops from 195 to 144 hats. What is the price elasticity of demand for its hats? (Use the midpoint method for your calculations and round your answer to two decimal places.)

e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase in the quantity demanded of electric cars from 520,000 to 1 million. The numerical value of cross-price elasticity is Electricity and electric cars are complementary products. A