Each case from recent market experience or from test markets

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Compute elasticities of demand and explain briefly for each the relevance of this information in decision-making by the firm. The data has been generated in each case from recent market experience or from test markets.

1. Current p of dinner =$100, q=60; New p = $80, q=70

2. Current symphony ticket p=$90, q=2000; New p= $50, q=4000

3. Current monthly income =$10,000, monthly q=6 of dinners out; new income = $8000, q=4

4. Current p of good y = $50, q of good x=100; new p of y = $40,q of x=90 (p of x has not changed)

Reference no: EM13998640

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