Pricing decision on the basis of elasticity of demand

Assignment Help Macroeconomics

Reference no: EM1311127

1. Find the flaw in the following forecast:"In 2006 we predict that the demand curve for handheld PC's will continue to shift leftward, which will tend to lower price and quantity.however, with a lower price, supply will also decrease, shifting the supply curve to th eleft. A leftward shift of the supply curve tends to raise price and lower quantity sold . we conclude that as 2006 proceeds, quantity sold will decrease but the price of hadn held pc 's may either rise or fall what is the mistake inlogic in the forecast?Explain

2. Suppose you own a barbershop/saloon. You are considering lowering the price of either haircuts or alcoholic drinks .The actual elasticity of demand for haircuts is 1.36 and for alcoholic drinks is 0.62. which price should you lower.Explain

3. A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer

Reference no: EM1311127

Questions Cloud

Describe the capital budgeting : Describe the Capital Budgeting and what is the average of using simulation in the capital budgeting process is

Enhance company''s financial performance : Show Which alternative would most likely enhance this company's financial performance, overall

Attention deficit hyperactivity disorder : Researchers have discovered that children experiencing Attention Deficit Hyperactivity Disorder (ADHD) show improvements if they attend classes on involving behavioral and social skills

Find the lowest transfer price : Calculation cost to make a product - Evaluate the lowest transfer price the Parts Division would accept for Product A?

Pricing decision on the basis of elasticity of demand : A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer

Researcher-finding students final grades : When an educator wanted to see if the number of absences from class throughout a semester was related with students' final grades, that researcher would use:

What is the average of using simulation : Objective type questions on capital budgeting and what is the average of using simulation in the capital budgeting process is

Density of beer at different weather condition : A Norwich MCE student is involved in a crucial out of class experiment. He is in his dorm room 34 feet above an historic rock wall. Describe the final result and state any assumptions that you need to make. Would the final result be any different o..

Purpose journal entry to record tanner-unf''s investment : Purpose the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2009. and Prepare the journal entry by Tanner-UNF to record interest on December 31, 2009, at the effective (market) rate.

User Account

All Pages