ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Suppose that you are currently charging $10 for your product and selling 10,000 items. Calculate your total revenue. If you increase your
price to $11, you estimate that you will sell 8,000 units. Calculate your total revenue. Calculate the price elasticity of demand.
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- Which of the following goods would you expect to have the lowest price elasticity of demand? Diamonds Yachts Rice Vacation Homesarrow_forwardYou sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods. [Anda menjual dua barang berbeza: pencetak dan kartrij toner. Keanjalan harga permintaan untuk pencetak adalah -3.4, dan anda memperoleh jumlah hasil sebanyak RM15,000 sebulan memperoleh jumlah hasil RM5,000 sebulan untuk kartrij toner. Keanjalan permintaan silang bagi kedua-dua barang adalah -2.5. Sekiranya anda membuat keputusan untuk menurunkan harga pencetak sebanyak 5%, hitung jumlah hasil baharu anda untuk kedua-dua barang tersebut.] (c) untuk barang tersebut. Andaarrow_forwardWhen the local pizza parlor prices pizzas at $12 each, it generally sells 7000 pizzas per month. If it lowers the price to $10, sales increase to 9000 pizzas per month. Given this information, we know that the price elasticity of demand for pizza is about 1.38, and an increase in price from $10 to $12 results in a decrease in total revenue. 0.72, and an increase in price from $10 to $12 results in an increase in total revenue. 0.72, and an increase in price from $10 to $12 results in a decrease in total revenue. 1.38, and an increase in price from $10 to $12 results in an increase in total revenue.arrow_forward
- Please see below. The pictures go together.arrow_forwardQuestion 2. Suppose that the price elasticity of demand for an ice cream cone is -1.9. If the local ice cream shop owner wants to increase total revenue, what would you recommend he or she do?arrow_forwardThe quantity demanded of a commodity at price 8 per unit is 600 units. Its price falls by 25% and quantity demanded rises by 300 units. Calculate elasticity of demand.arrow_forward
- Melanie really enjoys using her old-school charcoal grill to cook steaks, but she has found that due to environmental regulations, charcoal prices have gone up 50%. What is her price elasticity of demand for the rest of this month going to be compared to what it will be in the spring? Please explain why.arrow_forwardIf you know that your consumers have an income elasticity of +2.5, and you expect incomes to go up by 2% next year, what can you expect will happen to demand for your product?arrow_forwardWhich of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?arrow_forward
- The price of DVDs falls from an average of $22 to $16. As a result sales increase from 50,000 units per year to 85,000 units. What's the price of elasticityarrow_forwardYou are the sales manager for a processed food company and have been informed that the price elasticity of demand for your most popular snack is 1.45. To increase total revenues from that product, you should Hold the price of the snack constant Decrease the price of the snack Increase the supply of the snack O Increase the price of the snack Decrease the supply of the snackarrow_forwardThe price elasticity of demand for keyboards is 2.3. If the percentage change in quantity demanded is 50% and the average price is $10, what is the change in price? Work with 6 decimal places and round your final answer to 2 decimal places, if necessary. Do not enter the comma "," or a dollar sign ($) while entering your answer. Checkarrow_forward
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