User Account

All Pages

Determining the consumer elasticity

Assignment Help Business Economics
Reference no: EM131521327

Consumer elasticity

Instructions:

In this activity you will solve exercises related to the subject of the elasticity of the consumer.

Analyze: After a study done by some consultants, it was determined that the equation of demand for the product sold by the company XYZ, Inc. is as follows:

Q = 100-5 P

Determine the number of units (Q) you can sell if you set a price (P) of $ 7.00

If you want to sell 40 units, what price (P) should you charge?

What would be the highest price (P) that someone would be willing to pay for the product.

Determine the elasticity of demand (Ed) when the price changes from $ 8.00 to $ 9.00.

Determine the elasticity of demand (Ed) when the price (P) is $ 9.00.

Should the company charge a price higher or lower than $ 9.00 for your product? Why?

Determine the amount to be sold (Q) and the price to be charged (P) so that the company can maximize its Total Income (IT)?

Show that the price elasticity of demand equals -1.00, when the firm is maximizing its total revenue (ITmax).

You must show all the computations associated with these exercises to obtain the corresponding credit.

Your work must be original and should not contain material copied from books or the Internet.

Reference no: EM131521327

Questions Cloud

Tastes are similar to yours or different : "If you were seeking out a trading partner, would you choose someone whose tastes are similar to yours or different? Explain your answer.''
Design a communication plan for the project : Construct a project charter to revamp the compensation and benefits package. Design a communication plan for the project
Buy debt and default on debt : People said I want to go and buy debt and default on debt, and I mean, these people are crazy.
About the valuation of a constant growth stock : If its required return is 14%, what is the stock's expected price 2 years from today?
Determining the consumer elasticity : In this activity you will solve exercises related to the subject of the elasticity of the consumer.
Preferred stock valuation-what is the stocks value : Earley Corporation issued perpetual preferred stock with a 10% annual dividend. What is the stock's value?
What is required rate of return : What stock price is expected 1 year from now? What is the required rate of return?
What is the value of the bond immediately after payment : What is the value of the bond immediately after a payment is? made?
What is the stock current value per share : Constant growth valuation-What is the stock's current value per share?

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the net income

Raytheon’s State College location had a gross income of $20,000,000 in 2015. In 2015 they also paid $3,000,000 in employee salaries, $4,000,000 in operating and maintenance costs, $800,000 in depreciation expense, $200,000 in loan principal payment, ..

  Difference in average operating time for the two samples

You are assessing the difference in the average time that two new fully-charged solar batteries can produce electricity before they need to be again exposed to the sun. Using a sample of 50 Type 1 batteries and 50 Type 2 batteries, you build a 90% co..

  Suppose two hot dog stands

Suppose two hot dog stands, Al’s & Bob’s, position themselves at different ends of a 100 yard stretch of beach. Assume there are 100 beach goers evenly distributed along the stretch of beach and travel costs are $.1 per yard. If Al charges $1 for his..

  Therefore shift the aggregate supply curve to the left

Which one of the following would increase per-unit production cost and therefore shift the aggregate supply curve to the left?

  Price elasticity of demand for potatoes

Suppose that the price elasticity of demand for potatoes is -.3 and that the price of potatoes were to drop by 10%. A. What will happen to the quantity of potatoes demanded?

  Illustrate what is the most effective process of decreasing

Illustrate what is the most effective process of decreasing the quantity of drugs consumed and decreasing the amount of drug-related crime.

  Specify the best parametric model

Specify the best parametric model for estimating the direct cost of commercial facility construction projects performed by this firm.

  Marginal utility per doughnut

Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..

  How much has the growth in international trade impacted

How much has the growth in international trade impacted your company, or industry? Has the devaluation of the U.S. dollar impacted your company, or industry? Explain.

  Describe the difference between correlation and causation

You work for the American Red Cross as a Health Economics consultant in the Boston area. You are told to guess the correlation between snow damage to houses during the winter storms last year and the median price of the house. Describe the difference..

  Preventing another recession or promoting strong recovery

Did the Federal Reserve's actions succeed in preventing another recession or promoting a strong recovery? Identify which credit facilities/programs were effective and which were not as effective.

  What is the equilibrium price

What is the equilibrium price. What is the equilibrium quantity. If the price was $7, what would be the quantity demanded

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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