Revenues from both disposable and digital camera sales

Assignment Help Business Economics

Reference no: EM13858788

You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 40 percent of your revenues, which grow about 2 percent annually. You recently received a preliminary report that suggests consumers take three times more digital photographs than photos with traditional film, and that the cross-price elasticity of demand between digital and disposable cameras is –0.3. In 2012, your company earned about $600 million from sales of digital cameras and about $400 million from sales of disposable cameras.

If the own price elasticity of demand for disposable cameras is –2, how will a 4 percent decrease in the price of disposable cameras affect your overall revenues from both disposable and digital camera sales?

Your overall revenues will change by $___________ million

Reference no: EM13858788

Questions Cloud

Full employment-GDP deflator : Country X has an $8000 billion GDP and a population of 200 million. Country Y has a $6000 billion GDP and a population of 150 million. Which of the following is true? Full employment is: If the GDP deflator is now 125, we may conclude that since the ..

In equilibrium-perceived-actual market share will be same : 10 consumers, ranked by their value for a network product v = 1...10, are deciding whether to connect to the network. If there are n people on the network, including oneself, then a consumer's willingness to pay equals n x v. What is the highest pric..

The case of anthony : Anthony is a 16-year-old Caucasian male who is currently undergoing psychological treatment. He initially began treatment at age 14 due to his mothers rising concerns. Anthony's parents separated when he was very young. He resides with his biolog..

Calculate the voltage and current of the sending end : Calculate the voltage and current of the sending end of the transmission line. Calculate the p.f. at the sending end of the transmission lines.

Revenues from both disposable and digital camera sales : You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 40 percent of your revenues, which grow about 2 percent annually. If the own price elasticity of demand for..

Three domains of development : 1. Describe each of the three domains of development (physical, cognitive, and psychosocial) and provide an example of each.

Create an argument supporting three items in the act : Create an argument supporting three items in the act that you would not change

Is this result consistent with your intuition : Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted by M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = m5 B5 and wants to produce 10 barrels of pale ale this week. How..

The current price-there is a surplus of a good : If, at the current price, there is a surplus of a good, then

User Account

All Pages