Reference no: EM131241421
1. The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. Which of the following would be the best option for the company?
Raise the price and plan to increase the quantity supplied.
Lower the price and plan to increase the quantity supplied.
Raise the price and plan to decrease the quantity supplied.
Lower the price and plan to decrease the quantity supplied.
2. Refer to the situation described in question 10. What was total revenue for the past year, in dollars? (Enter as a whole number without the dollar sign.)
3. Refer to the situation described in question 10. Given the price elasticity of -2.5, and the proposed price of $63, what should be the quantity supplied? (Round to the nearest whole number)
4. Refer to the situation described in question 10. What would total annual revenue be at the proposed price of $63? (Enter as a whole number without the dollar sign.)
5. If the company’s belief is correct, would total revenue increase, decrease, or remain the same as a result of the $63 price cut?
Increase
Decrease
Remain the same
|
Projectile was launched to where it hits its target
: What is the straight-line distance from where the projectile was launched to where it hits its target?
|
|
Market demand for chicken meat exemplifies
: The world market demand for chicken meat exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for chicken meat in the world. Assuming chicken meat is a(n) normal good, a(n) decrease in numbe..
|
|
The world market demand for aluminum exemplifies
: The world market demand for aluminum exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for aluminum in the world. Assuming aluminum is a(n) normal good, a(n) decrease in preferences (and ..
|
|
What are the gains from trade for each country
: Suppose that in England 5 man-hours are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour is required for a cask of wine and 4 man hours for a bolt of cloth. What are the ..
|
|
Company makes and sells skateboards at an average price
: The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. Which of the following would ..
|
|
Graph the weekly budget line
: Tom earns $20 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 10 percent tax rate and pays $5 per hour in child care expenses for each hour he works. Tom receives $100 in child suppor..
|
|
Measures that percentage share of the total sales
: The four-firm_______________ measures that percentage share of the total sales in the industry that is accounted for by the largest four firms. When the regulators sets a price that a firm cannot exceed over that next few years, the regulator is enfo..
|
|
Make a listening guide for piece of music you like
: Make a listening guide for a piece of music you like. Use the format of the textbook's listening guides as a guide. Be sure to listen to the piece without any distractions why you are writing the guide. Write what you enjoy this piece of music (be sp..
|