What do you understand by demand and what would you say is its main purpose?

Don't answer by pen paper and don't use

1. Online the timing and tailoring of prices to specific models of 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 28 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 $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? 2. The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to verify this through…

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Which of the following is likely to have the most price elastic demand? a. laptop computers Ob. tablets c. Microsoft Surface tablets d. cell phones

Please answer C and D:

K The graph shows the supply curve of sweaters. Now the number of suppliers of sweaters decreases and all other influences on selling plans remain the same. Draw a curve that shows what happens to the supply of sweaters today. Label it. >>> Check that your new supply curve obeys the law of supply. 160 140- 120- 100- 80- 60+ 40- 20- 0- Price (dollars per sweater) 0 S 3 5 Quantity (millions of sweaters per year) >>> Draw only the objects specified in the question. 6 Q o G

5. Suppose that the price elasticity of the demand is 0.76. If we increase the price ofthe the demanded product, how would this affect the revenue? Explain