Change in total monthly revenue

Assignment Help Business Economics
Reference no: EM131357610

Remembering the Learning Practice in Unit 3, in the year 107 WBCE (Way Before the Common Era) the Gondwanaland Chairman of Production reported that the gosum berry growers were able to meet an average demand of 700 barrels of gosum berries per month at an average a price of $70 per barrel.

In the year 108 WBCE the growers were plagued with a gosum berry bug infestation that reduced average output, causing production to fall to only 600 barrels per month, causing the price to rise to $84 per barrel. The following table shows the Chairman's report:

Year (WBCE)

Monthly barrels of gosum berries demanded

Price per barrel

107

700

$70

108

600

$84

a. Using the midpoint method, calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means?

b. What is the monthly average total revenue for year 107, and the monthly average total revenue for year 108? How do these numbers compare to each other?

Year (WBCE)

Monthly barrels of gosum berries demanded

Price per barrel

Monthly average total revenue

107

700

$70


108

600

$84




Change in average total monthly revenue


c. Using your answer to part a. above, how could you have predicted this change in total monthly revenue?

Reference no: EM131357610

Questions Cloud

Trends in healthcare services : You are a member of a presidential commission appointed to consider a mandatory national health insurance plan and the question of how to fund the plan is being discussed.
Conduct research and summarize a criminal case : Conduct research and summarize a criminal case involving an internet predator. Be sure and address what type of sexual offender this case involved.What are some of the investigative challenges faced when attempting to capture internet predators?
Optimal level of activity in the table above : a. What is the optimal level of activity in the table above? b. What is the value of net benefit at the optimal level of activity? Can net benefit be increased by moving to any other level of A? Explain
Considering the purchase of arras manufacturing : Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow from assets for Arras is $7.8 milli..
Change in total monthly revenue : Using your answer to part a. above, how could you have predicted this change in total monthly revenue?
International bond-bank and equity markets : Briefly describe the differences among international bond, bank and equity markets. Would you support an MNC that favors financing through bonds issues or would you rather support one that favors financing through stock issues?
Discuss about the sadistic sexual assault : Articles are reviewed by a panel of experts before they are accepted for publication;articles are written by a scholar or specialist in the field;articles report on original research or experimentation;are often published by professional associations..
Determine the power required to overcome aerodynamic : Determine the power, in kW, required to overcome aerodynamic drag for a truck moving at 110 km/h, if CD 0.65, A 10 m2 , and 1.1 kg/m3
True statement about diversification : Which of the following is a true statement about diversification?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd