Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 3, Problem 1.8CE
To determine
The operating profits or losses pertaining to 14, 12 and 10 units being sold per day.
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Students have asked these similar questions
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $40, $60, $80, $100, $120,
$140, and $160 per bike.
6250
5820
Total Revenue
5390
4960
4530
4100
3670
3240
2810
2380
20
40
60
80
100 120 140
160 180 200 220 240
PRICE (Dollars per bike)
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of bikes is currently $80 per bike, shown as point A on the initial graph. Because the demand between points A and B is
, a $20-per-bike decrease in price will lead to
in total revenue per day.
In general, in order for a price increase to cause an increase in total revenue, demand must be
TOTAL REVENUE (Dollars)
How might you determine whether Nike andReebok are in competition with each other?
I thought for part (a) the Q will equal to 166.
and for part (b) isnt the price elasticity equal to -2.04
Chapter 3 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 3 - The Potomac Range Corporation manufactures a line...Ch. 3 - The price elasticity of demand for personal...Ch. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - In an attempt to increase revenues and profits, a...Ch. 3 - The Stopdecay Company sells an electric toothbrush...Ch. 3 - Prob. 9ECh. 3 - Prob. 10E
Ch. 3 - Federal excise taxes on gasoline vary widely...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 1.1CECh. 3 - Prob. 1.2CECh. 3 - Prob. 1.3CECh. 3 - Prob. 1.4CECh. 3 - Prob. 1.5CECh. 3 - Prob. 1.6CECh. 3 - Prob. 1.7CECh. 3 - Prob. 1.8CECh. 3 - How many shuts do you recommend selling per color...Ch. 3 - Prob. 2.1CECh. 3 - Prob. 2.2CECh. 3 - Prob. 2.3CECh. 3 - Prob. 2.4CECh. 3 - Prob. 2.5CECh. 3 - Prob. 2.6CE
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Similar questions
- Compute for the mid-point elasticity if price increased from 500 to 520 and quantity demanded decreased from 45 to 40 2-78 -3.00 3.00 -2.78arrow_forwardThe demand schedule of the product is given below Price $ (P) Quantity (Q) 100 1 90 2 80 3 70 4 60 5 50 6 40 7 30 8 20 9 10 10 Calculate the arc price elasticity as the price decrease from 40 to 30$ and interpret the result. What are the determinants of price elasticity of demand?arrow_forwardPrice Elasticity of Demand Problem Business has price elasticity of -1.5 They sold 300 units at $10 each If they cut the unit price by 5% how many units would they sell and what would be the effect on revenue?arrow_forward
- A sporting goods store has estimated the demand for a popular brand of running shoes as given in the table below. Price per unit Shoe sales (OMR) 60 50 40 30 20 10 per 100 200 300 400 500 600 week Graphically present the table to get a demand curve. If the store charges a price of 50 OMR, then increases this price to 60 OMR, estimate price elasticity of demand. Analyze the total revenue before and after the price change.arrow_forward4x + 500 10x +9 the number of plants sold per day when the price is x dollars per plant. A garden shop determines the demand function q = D(x) = (a) Find the elasticity. (b) Find the elasticity when x=3. (c) At $3 per plant, will a small increase in price cause the total revenue to increase or decrease? (a) The elasticity is during early summer for tomato plants where q is M Irarrow_forwardIf the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be?arrow_forward
- 60 50 40 30 20 10 Comerica Park: 42,000 Capacity 10000 20000 MC 30000 40000 DL DH MRL MRH MRL and DL are for low-demand games. MRH and DH are for high-demand games. Based on the graph above, what is the total revenue for both games (high and low demand games) if the price is set at the low- demand price level?arrow_forwardFind total revenue when price Is $45 per unit and the total quantity sold is 7arrow_forwardPrice (dollars) 9. 7 10 14 18 22 26 30 Quantity (units per year) In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $8 to $7 is equal to A) 0.62. B) 0.40. C) 2.50. D) 1.00.arrow_forward
- 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 Total Revenue 100 90 80 70 60 40 A 30 20 10 Demand 16 24 32 40 48 56 64 72 80 88 96 QUANTITY (Bikes) PRICE (Dollars per bike) 50arrow_forwardLawnTech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand at -3.9 at this price. LawnTech is thinking about raising its price by +4.0%. By what percent will Quantity sold change, given this change in price? Report your answer as a percent. Report 25.5%, for example, as "25.5". Remember to report the sign of the change. Rounding: tenth of a percent. Your Answer: Answerarrow_forwardTrue or false. Midpoint elasticity is greater than 1.arrow_forward
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