David black representing the management of the automobile

Assignment Help Business Economics
Reference no: EM1319063

Q1. F. James McDonald the former president of the US automobile workers federation suggested an average reduction of 4% in the price of the car. The automobile market was weak, that resulted in unemployment. Lower price would lead to greater sales also stimulate employment. McDonald believed to a 4% reduction in price would rise sales by 16%.

David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5. Black made it clear to he was referring to the elasticity of Demand ing response to a permanent price change of all manufacturers. He admitted to the elasticity to a temporary price cut might be greater. The studies to that Black referred found elasticity's ranging from 0.65 to 1.53.

a. Elucidate the concept of elasticity of Demand also the factors to affect it.

b. Interpret the meaning of David Blake's Demand estimate ranging from .65 to 1.53. Elucidate the significance of Demand elasticity in taking trade decision

Reference no: EM1319063

Questions Cloud

Self-actualization needs and social needs : According to Maslow, these workers are motivated to satisfy which of his hierarchy of needs? A. B. C. D. self-actualization needs social needs safety needs physiological needs
Is the product considered elastic inelastic : Is the product considered elastic, inelastic or unitary elastic. In a few sentences Illustrate what effect does the present supply also present Demand have on this product.
Solve the formula : Solve the formula
Probability depends on relative frequency : Why might the assumption of independence be violated? (b) Why might a driver be tempted not to use a seat belt "just on this trip"?
David black representing the management of the automobile : David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5.
Spot the type of forecasting approach for limited historical : If historical time series data is very limited, what type of forecasting approach would be useful.
Illustrate what is the amount of producer surplus : If quantity is 20 also if producers receive the seller's price for to output illustrate what is the amount of Producer Surplus.
Solve the formula for following variable : Solve the formula for following variable.
Probability by using combination : A certain model of remote-control Stanley garage door opener has nine binary (off/on) switches. The homeowner can set any code sequence.

Reviews

Write a Review

Business Economics Questions & Answers

  Important determinants of the demand for workstations

Important determinants of the demand for workstations and must therefore be included in the study. How would you respond to this implication.

  Balance sheet balances only assets and liabilities

Explain how that the balance sheet balances if these are the only assets and liabilities.

  Characteristics of proprietorships

Characteristics of Proprietorships what percentage of sole proprietorships is engaged in retail trade? Why might more sole proprietorships be engaged in services rather than manufacturing?

  Services purchased by the government of numidia

Illustrate what is the value of goods and services purchased by the government of Numidia.

  Dhl prides itself on having its own staff

DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.

  What is the prevailing price of oil at this level

Illustrate what is OPEC's optimal level of production? Illustrate what is the prevailing price of oil at this level.

  What is its economic interpretation

Consider an economy where there are N consumers, each of them having one unit of available time.

  Milton friedman

Social responsibility other than to make as much money for their stockholders as possible. Explain why you agree or disagree with such a statement.

  What do economists call the percentage change in real gdp

Illustrate what do economists call the percentage change in real GDP from year to the next. Under a business agreement 70/30 why should the 70% shareholder decision carry all day.

  Decide to conduct a swot analysis to evaluate

Decide to conduct a SWOT analysis to evaluate the value and risks. Provide a SWOT analysis and briefly discuss each factor.

  Additional revenue circuit city makes as it moves

Compare the additional revenue Circuit City makes as it moves from 2 million to 4 million copies of Vista with the additional revenue it makes as it moves.

  Typical firm producing

For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.

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