Is assumption likely to be correct or incorret

Assignment Help Microeconomics
Reference no: EM13529341

A family friend is shopping for an exclusive Vera Wang wedding gown for $8,000 but feels that the price is excessive. She argues that the company should lower prices not only to benefit customers but also to increase the company's revenues and profits. What has she assumed about the price elasticity of demand for these gowns? Is her assumption likely to be correct or incorrect? Why?

Reference no: EM13529341

Questions Cloud

What is the source for these sediments : What is the source for these sediments (how are they produced)? How are they similar? How are they different?describe the different types of sediments found in oceanic basins?
Calculate what is the mass of the crate : A crate is held at rest on a frictionless 53 degree ramp by a rope parallel to the incline. If the tension in the rope is 7000 N, what is the mass of the crate
What is the potential difference before teflon is removed : Two 3.0-cm-diameter electrodes with a 0.15-mm-thick sheet of Teflon between them are attached to a 9.0V battery. What is the potential difference before the Teflon is removed
Examples of endemic species : The Hawaiian and Galapagos Islands (as well as many other island chains) are home to many endemic species. Select either island chain, then describe 2 examples of endemic species found on that island chain (this will require additional resources). Tr..
Is assumption likely to be correct or incorret : Is her assumption likely to be correct or incorret
Explain what do the elements in each group have in common : What do the elements in each group have in common. A block is formed by the 28 elements set off at the bottom of the periodic table. What do these elements have in common
Calculate the standard hours allowed for actual production : Calculate the standard hours allowed for actual production, calculate the applied fixed overhead and calculate the total fixed overhead variance.
Find the component of the speed of the plane west : A plane travels horizontally at 737 m/s at an angle of 35.9 degrees west of north. find the component of the speed of the plane west
Dots program require in the treatment of tuberculosis : Approximately which visible wavelengths arebeing absorbed by a solution that appears blue in color? What is the ratio of charged/uncharged aspartic acid cahin at pH 8.1? What does the DOTS program require in the treatment of tuberculosis?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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