The underground fare in your town has just been increased from a current level of $1.00  to $1.20 per ride. As a result, a 10 per cent decline in the number of passengers was noticed. a)     Compute the price elasticity of demand for underground rides. Answer (enter a numerical value): b)      Would you expect an increase or a decrease in revenues resulting from this price change?  Answer (select):  c)       If the fare was reduced back to $1.00, what impact would you expect on the number of passengers? Answer (select):

The price of an iphone 12 is initially £1250 at which 3.8 million phones are sold. A year later the price of an iphone 12 is £950 at which 5.5 million phones are sold. What is the price elasticity of demand? a) -1.86 b) -0.54 c) -6.03 d) -1.90

Worldwide annual sales of smartphones over a two year period were approximately q -4p+3,060 million phones at a selling price of sp per phone. E= (b) In one of the years the actual selling price was $325 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal place Interpret your answer. The demand was going by about % per 1% increase in at that price level (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What would have been the resulting annual revenue? (Round your answer to two decimal places.)

A sporting goods store has estimated the demand for a popular brand of running shoes as given in the table below. Price per unit Shoe sales (OMR) 60 50 40 30 20 10 per 100 200 300 400 500 600 week Graphically present the table to get a demand curve. If the store charges a price of 50 OMR, then increases this price to 60 OMR, estimate price elasticity of demand. Analyze the total revenue before and after the price change.

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…

B and C

The demand for Widgets (QX) is a function of the price of widgets (PX), the price of woozles (PY), and per capita income (1): QX = 1950 - 10 PX + 5 PY-0.11 Currently, PX = 25, PY = 10, and 1 = 15,000. (a) Calculate the elasticity of demand for widgets with respect to its own I price, the price of woozles, and income. (b) Over what range of prices is the demand for widgets elastic? (c) If the cost per widget is 10 and the manufacturer behaves as a monopolist, how many widgets will be sold and at what price: (d) By how much must the price of widgets change if there is a 1% decrease in per capita income and the goal is to keep QX constant.

You are an Economics consultant at Economics 4U, a small consulting firm that helps its clients to use Economics knowledge for better business decision-making. You have been approached by a new client, Mr. PD Smith, a product manufacturer, to conduct research on the price elasticity of demand, income elasticity of demand and the price elasticity of supply for his product category. The manufacturer would like to obtain a better understanding of the concept of elasticity and how to use this knowledge to make better strategic decisions about his product.Present your findings in a report that provides the following information: • Introduction Explain the purpose of your report and identify the product you have chosen (Provide a brief explanation of the product category if it is one that is not well known).(+- ¼ page)

John, a restaurant consulting firm estimates that in Accra a 10% reduction in the price of roasted groundnut will increase kelewele demand by 20%. The restaurant further estimates that a 10% reduction in price of roasted plantain will decrease kelewele by 15%. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted groundnut. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted plantain.

Suppose that the price per unit p as a function of the demanda is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when x = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. x = 266.0 ✓