Suppose the figure to the right illustrates the monthly demand for imported rugs ata local rug gallery. Suppose the price of rugs increases from $5,500 to $6,500.10,0009,000-Total revenue before the price change is S (Enter your response as an integer.)Total revenue after the price change is $(Enter your response as an integer.)8,000-7,000-The change in total revenue is $include a minus sign if appropriate,)(Enter your response as an integer and6,000-The demand for imported rugs at this rug gallery isV over the given5,000-price range.4,000-3,000-Demand2,000-1,000-0-10 20 3040 50 G070 8090 100OuantiRent (dollars per month)U U U

Total revenue before the price change is $ (Enter your response as an inter Total revenue after the price change is $. (Enter your response as an intege The change in total revenue is $ (Enter your response as an integer and include a minus sign if appropriate.) The demand for imported rugs at this rug gallery is price range. over the giver

Total revenue before the price change is $ (Enter your response as an inter Total revenue after the price change is $. (Enter your response as an intege The change in total revenue is $ (Enter your response as an integer and include a minus sign if appropriate.) The demand for imported rugs at this rug gallery is price range. over the giver

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Paula sells boomerangs. The price elasticity of demand for boomerangs is 0.54. If Paula wishes to increase her revenue, should she raise or lower the price of boomerangs? Explain your answer in a few sentences.
Think about two products, beef and chicken. What kind of sign ( positive or negative) the cross price elasticity will have? Why ? And explain briefly
Explain how price elasticity affects potential demand for a product.
When a certain brand of dog food sells for $20 per bag, 10,000 units are sold; when the price changes to $22, 8000 units are sold. Calculate its price elasticity of demand. Enter only numbers, a decimal point, and/or a negative sign as needed. Round your answer to two decimal places as necessary; when rounding on intermediate steps, use four places. Consider again the dog food from the last question. Demand for this dog food is inferior O normal O (relatively) elastic unit elastic O (relatively) inelastic
Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.75 per can, then what will be the market demand for soda each month? Mallory's Demand for Sodal Rick's Demand for Soda Price ($/can) 1.50 1.25 1.00 0.75 0.50 0.25 0 0 10 20 30 40 50 60 70 Quantity (cans of soda/month) rev: 02_01_2018_QC_CS-116371 O 70 50 O 30 O 20 Price ($/can) 1.50 1.25 1.00 0.75 0.50 0.25 0 0 10 20 30 40 50 60 70 Quantity (cans of soda/month)
If demand is flat, then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C d an increase in price will reduce total revenue, indicating little pricing power. an increase in price will increase total revenue, indicating little pricing power. a decrease in price will reduce total revenue, indicating a lot of pricing power. a decrease in price will have no effect on total revenue, indicating no pricing power. Your answer
What is a consumers wishedfor level of performances?
When a certain brand of dog food sells for $20 per bag, 10,000 units are sold; when the price changes to $22, 7000 units are sold. Calculate price elasticity of demand for the dog food, carefully folowing all numeric instructions. Enter only numbers, a decimal point, and/or a negative sign as needed. Round your answer to two decimal places as necessary; if you round on intermediate steps, use four places.
How would you expect the elasticity of demand for each of the following products to compare with the price elasticity of demand for standard car tires? Explain your answer. a. Snow tires (not necessary, but handy on snowy days) b. School bus tires (purchased with tax dollars on a fixed schedule) c. Bicycle tires (which require a smaller portion of a consumer's income than car tires) d. Tires made by the most reputable company (more of a luxury than a necessity)
Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand? O Sports car O Amputation procedures for diabetes sufferers The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.
MicroEconomics Practice: Eric has a taco stand in downtown San Francisco. He wants to increase his total revenue. He knows that, when tacos are $1.00, he sells 20 an hour, and when he lowers the price to $0.75, he sells 25 an hour. (a) Calculate the price elasticity of demand for Jose's hotdogs using the midpoint formula. (show the formula and your calculations) (b) Is demand elastic or inelastic? How do you know? Explain your answer. (c) Using the price elasticity of demand calculated in section A, explain whether Eric should raise or lower the price to generate more revenue.
Please see below. The pictures go together.