Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 11, Problem 30APA
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On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $30, $45, $60, $75, $90,
$105, and $120 per scooter.
TOTAL REVENUE (Dollars)
1460
1320
1180
1040
900
760
620
480
340
200
+
0 15 30
45 60 75 90 105 120 135 150 165 180 195
PRICE (Dollars per scooter)
Total Revenue
?
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $45 per scooter, shown as point B on the initial graph. Because the demand between points A and B is
▼, a $15-per-scooter increase in price will lead to
in total revenue per week.
In general, in order for a price increase to cause a decrease in total revenue, demand must be
Two months after launching the 8 GB iPhone in 2007Applereduced its price from $599 to $399 Unit sales not only increased , they soared, Front Page After iPhone Price CutSales Are Up by 200 Percent reports Refer to the and this price-cut information to answer one question FRONT PAGE iPhone Price Sales Up by 200 Piper Gene Munster, the person for a survey dedicated to Apple in which he estimated number of iPhones were sold, has come up with yet another interesting theory According to Munster and the week Apple announcement about 1 Phones the take the that the price sales increased to percent By Apple and AT&T were an average of 9,000 Phones a day before the price reduction, which would have put their quarterly sales as of September the end of the , he believes Apple will have of 2007 What was the quarterly price elasticity of demand for iPhones in 2007
19. Canadians' New Focus on Thrift
Canadian shoppers' shift to greater thriftiness has been unkind to retailers like Bikini Village and Le Chateau, which recently posted losses, but it may be a boon for budget stores like Dollarama Inc., which recently generated double-digit sales.
Source: The Financial Post, July 3, 2011
Draw a graph to show the effect of increased thriftiness on sales at (i) Bikini Village and (ii0 Dollarama.
Use the following information to work Problems 20 and 21.
Boom Time For "Gently Used" Clothes Most retailers are blaming the economy for their poor sales, but one store chain that sells used name-brand children's clothes, toys, and furniture is boldly declaring that an economic downturn can actually be a boon for its business. Last year, the company took in $20 million in sales, up 5% from the previous year. Sales are already up 5% this year.
Sources: CNN, April 17, 2008
20. a. According to news clip, is used clothing a…
Chapter 11 Solutions
Macroeconomics
Ch. 11.1 - Prob. 1RQCh. 11.1 - Prob. 2RQCh. 11.2 - Prob. 1RQCh. 11.2 - Prob. 2RQCh. 11.2 - Prob. 3RQCh. 11.3 - Prob. 1RQCh. 11.3 - Prob. 2RQCh. 11.3 - Prob. 3RQCh. 11.3 - Prob. 4RQCh. 11.3 - Prob. 5RQ
Ch. 11.4 - Prob. 1RQCh. 11.4 - Prob. 2RQCh. 11.4 - Prob. 3RQCh. 11.4 - Prob. 4RQCh. 11.4 - Prob. 5RQCh. 11 - Prob. 1SPACh. 11 - Prob. 2SPACh. 11 - Prob. 3SPACh. 11 - Prob. 4SPACh. 11 - Prob. 5SPACh. 11 - Prob. 6SPACh. 11 - Prob. 7SPACh. 11 - Prob. 8SPACh. 11 - Prob. 9SPACh. 11 - Prob. 10SPACh. 11 - Prob. 11SPACh. 11 - Prob. 12SPACh. 11 - Prob. 13SPACh. 11 - Prob. 14SPACh. 11 - Prob. 15APACh. 11 - Prob. 16APACh. 11 - Prob. 17APACh. 11 - Prob. 18APACh. 11 - Prob. 19APACh. 11 - Prob. 20APACh. 11 - Prob. 21APACh. 11 - Prob. 22APACh. 11 - Prob. 23APACh. 11 - Prob. 24APACh. 11 - Prob. 25APACh. 11 - Prob. 26APACh. 11 - Prob. 27APACh. 11 - Prob. 28APACh. 11 - Prob. 29APACh. 11 - Prob. 30APACh. 11 - Prob. 31APACh. 11 - Prob. 32APA
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