Explain the consumer responses in both markets

Assignment Help Business Economics

Reference no: EM13982320

Please make a graph of the following in MICROSOFT EXCEL to explain THE FULL answer of the following.

Suppose the quantity of gadgets demanded is reported to have fallen by 20 units—from 50 to 30 units—as a result of a per-unit-price increase in widgets from $10 to $14, what is the cross-price elasticity of demand? Explain your cross-price elasticity coefficient and graphically show and explain the consumer responses in both markets. As a manager, carefully explain why your estimated coefficient may or may not influence your pricing decision in this case.

Reference no: EM13982320

Questions Cloud

Value of the company common stock : What would you expect the price of each share to be today, and what is the value of the company's common stock?

Determine the profit-maximizing price of each meal assuming : The Blue Dragon Restaurant is a new Chinese Restaurant in town. As the only Chinese restaurant in the area, it faces the following daily demand curve: Determine the profit-maximizing price of each meal assuming The Blue Dragon is behaving as a monopo..

How the changes occurring in healthcare : How the changes occurring in healthcare will affect the HIM professional's career. The paper should address the topics studied throughout the term. During each Seminar the instructor will discuss how the unit topic applies to the RHIA exam and to ..

Roles and functions of human resource management : 1. Evaluate the roles and functions of Human Resource Management based on its historical context against its contemporary context. 2. Evaluate the planning process involved in human resource planning.

Explain the consumer responses in both markets : Suppose the quantity of gadgets demanded is reported to have fallen by 20 units—from 50 to 30 units—as a result of a per-unit-price increase in widgets from $10 to $14, what is the cross-price elasticity of demand? Explain your cross-price elasticity..

Who was salvador allende : How did the Peruvian military dictatorship differ from others in South America?

How to operate a piece of equipment or appliance : How to operate a piece of equipment or appliance, or instructions for a work procedure you are familiar with. Be clear and concise. Give all the information your audience needs, but not more

Shift the demand curve for a good or service : Which of the following changes would not shift the demand curve for a good or service?

CVP Analysis-Sustainability-Uncertainty-Decision Tables : With gasoline prices increasing rapidly in recent years, consumers have moved to high miles-per-gallon (mpg) vehicles, in particular hybrid autos that rely on a battery as well as a gasoline engine for even greater mpg. Generate a cost function for e..

User Account

All Pages