You are the manager of a firm that receives revenues of $50,000 per year from product X and $50,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is 3. How much will your firm's total revenues (revenues from both products) change if

You are the manager of a firm that receives revenues of $50,000 per year from product X and $50,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is 3. How much will your firm's total revenues (revenues from both products) change if

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problem 03-06 (algo) You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Yand X is -1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign. GA
Explain why the advertising elasticity of the market demand for beer may be less than the advertising elasticity of the demand for one particular brand.
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You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −1.5, and the cross-price elasticity of demand between product Y and X is −1.8.How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
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When you compare the absolute value of the price elasticity of demand for most products [Hint, oil is one product that works this way.] in the long run (20 years) vs absolute value of the elasticity of demand for the products in the short run (6 months), the absolute value of the long run price elasticity of demand is... [Note: we consider demand elasticity positive, even though they're technically negative. In other words, for purposes of this question, "greater" means farther away from zero] a) less than that of the short run. In the long run, this elasticity will always be very close to zero b) not zero, but less than that of the short run c) equal to that of the short run d) greater than that of the short run