How were they able to solve for p

Assignment Help Business Economics
Reference no: EM132283940

How were they able to solve for P?

An end- of- aisle price promotions changes the price elasticity of a good from - 2 to - 3. If the normal price is $ 10, what should the promotional price be?

Using the suggestion, if elasticity is 2 when price is $10, MC is given by . Solving for MC we have MC = $5.

Knowing MC = $5, we want to find price if elasticity is 3. So we have . Solving for P we have P = $7.50.

Reference no: EM132283940

Questions Cloud

?xed and variable costs : How many miles do you have to drive before the two cars have the same total cost?
More transparent federal reserve : A couple of politicians have advocated for a 'more transparent' Federal Reserve. Board Chairs Bernanke and Greenspan have followed a practice of using
Incentives be changed to get better results : And second, how can the incentives be changed to get better results for both the listed contracts and for this class?
Market equilibrium by government controls : In a competitive market, if prices are held below market equilibrium by government controls, what will be the effect on output?
How were they able to solve for p : An end- of- aisle price promotions changes the price elasticity of a good from - 2 to - 3. If the normal price is $ 10, what should the promotional price be?
Characteristics of a purely competitive market : What are the characteristics of a purely competitive market? What makes these important? List at least two industries that are characterized by perfect
Do you agree or disagree with the states marijuana laws : Twenty-three states and the District of Columbia currently have laws legalizing marijuana in some form.
Elastic and inelastic goods or services : What are examples of both elastic and inelastic goods or services. How does their respective elasticity influence price changes or consumption behaviors?
What is the price elasticity of deman for pizza : Daniel's consumption of pizzas drops from 6 to 4 per week when the price rises from $9 to $11. What is the price elasticity of deman for pizza

Reviews

Write a Review

Business Economics Questions & Answers

  Dollar is trading on the foreign exchange market

One U.S. dollar is trading on the foreign exchange market for about 1.47 Chesterfield ales (the Chesterfield currency). Therefore, one Chesterfield ale would have purchased how many U.S. dollars?

  Mean fourth grade reading comprehension score

Monica's reading comprehension score = 22 Mean fourth grade reading comprehension score = 19

  Discuss the idea of external benefits in funding

1. Discuss the idea of external benefits in funding an education in the arts versus engineering or business

  Gross private domestic investment

Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current accoimt balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from..

  Regression results and the other computations

Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen

  What is wirelesses producer

What is Wirelesses' producer surplus from sales for each low-demand as well as consumer.

  Quality of education have changed

Several years? ago, 43?% of parents who had children in grades? K-12 were satisfied with the quality of education the students receive.

  Develop a choice table for interest rates

(a) Develop a choice table for interest rates from 0% to 25%. (b) If the highway department's interest rate is 6%, which specification is preferred?

  Find the monopoly profit maximizing output

Suppose a school has monopoly on parking spaces on its grounds. The teachers' inverse demand for parking spaces is given by pt=150-2yt, where y represent parking spaces and the subscript T stands for teachers. Find the monopoly's profit maximizing ou..

  About half of the paid lobbyists

About half of the paid lobbyists in Washington are former government staff members or former members of Congress. Why would interest groups employ such people? Why might some reformers want to limit the ability of interest groups to employ them?

  Which of the subsequent industries is most such asly

Which of the subsequent industries is most such asly to be monopolistically competitive. A normative economic statement such as "The minimum income should be abolished".

  Historical data for the random variable x

Along a stretch of highway the posted speed limit is 80 km/h. However, not everyone obeys the posted speed limit.

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