Upjohn Company’s hair regrowth product, Rogaine, required a prescription. It retailed for approximately $50 a bottle. Then in early 1996 Upjohn obtained approval from the Federal Drug Administration to sell Rogaine without a prescription. The retail price was reduced sharply to approximately $30 a bottle. Using the

You are working trying to estimate the proper price to charge a market for the firm that sells beer in Lancaster Pennsylvania. They estimated that the demand curve for the market is Quantity demanded=20-2P. The firm currently prices the good at 8 dollars. They want to move the price to 6 dollars in a attempt to increase profits. 1) What is the elasticity for this move in price (Use the midpoint method for elasticity) make sure you show your work?  2) Now you are contacted by a different branch of this company that is in a lower priced (Scranton P.A.) market with the same demand curve. They want to move the price from 2 to 5 dollars. What is the elasticity of this change (Use the midpoint method)? 3) Now suppose you find out that there is a similar product that impacts the Quantity demanded for a product. The relationship is Qd=15+Pb. Now suppose the price (Pb) of the other good is 5 and goes to 6. What is the Cross-price elasticity of the good?

why do you think brand-named goods are more elastic or less elastic than categories, especially when there are very good substitutes for Exxon gasoline available at close distances?

A fall in the price of radishes from $1 to $0.60 per bushel increases the quantity demanded from 19,000 to 21,000 bushels. The price elasticity of demand is   Question 7 options:   1   5   0.2   1.2   .8

Baylor Lumber sold 10 ft. long corral gates at $299 per gate last month. They sold 20 gates. This month they raised the price to $349 per gate and sales dropped to 12 gates. What is the own-price elasticity of demand for 10 ft. corral gates at Baylor Lumber using the mid-pointformula? What does this say about the demand for corral gates?

1. As a transit planner for the city of Miami, you must predict how many people ride the Miami Metrorail and how much money is generated from train fares. According to a recent study, the short-run elasticity of demand for Metrorail is 0.62 and the long- run elasticity is 1.59. The current ridership is 50,000 people per day. Suppose the city commission decides to increase fares by 10%. Predict the changes in train ridership over a one-month period and a five-year period. ANS: b. Over the one-month period, will total revenue increase or decrease? What will happen in the five-year period? ANS

Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic  and the annual supply curve is likely Flatter or Steeper  to be than the daily supply curve.

can you answer both questions? i will like your answer

Each scenario gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will increase, decrease, or not change the firm's total revenue. Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be -4.1. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 87%. Abe must have his prices by -27.87 Abe's total revenue by increased and total revenue to increased. At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 15%. She estimates that Webs-R-Us has a price elasticity of demand at -0.30. The manager expects the number of websites designed to decrease increase. %. e %

A firm estimates its price elasticity of demand for poutine to be -2 and its elasticity of demand with respect to advertising to be 0.1. The firm currently charges $10 and sells 10,000 units. What will lead to a larger increase in revenue: a $2 drop in price (while keeping advertising constant) or doubling the amount of advertising (while keeping the price constant)?