Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Nile.com wants to increase its total revenue. Currently every book it sells is priced at $10.50. One suggested strategy is to offer a discount that lowers the price of a book to $9.50, a 10% reduction in price using the midpoint method. TheNile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount.
Group A
(sales per week)
Group B
Volume of sales before the 10% discount
1.55 million
1.50 million
Volume of sales after the 10% discount
1.65 million
1.70 million
a) Using the midpoint method, calculate the price elasticity of demand for Group A and Group B.
b) Explain how the discount will affect total revenue from each group (use elasticity values to determine your answers).
c) Suppose the Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If the Nile.com wants to increase its total revenue, should discounts be offered to Group A or to Group B, to neither group, or to both groups?
1. price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on
Many factors determine the supply and demand for labor. Identify and explain two factors that would increase or decrease the demand for labor. Identify and explain two factors that would increase or decrease the supply of labor.
Describe how the marginal product for a resource can change. Conclude with an explanation for what can change the demand for a resource.
describe the process of workflow analysis. provide an example of workflow analysis in your organization.your response
What effect should each of the following have on the demand for gasoline in a competitive market? State what happens to demand. Explain your reasoning in each case and relate it to a demand determinant. (a) an increase in the number of cars (b) ..
Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because the pure competitor cannot make any economic profit.
prepare a two- to three-page paper in apa style sixth edition format that describes explains addresses and answers the
A user has the utility function U(x1,x2)=min{x1,2x2}, and his endowment is W=(0,12)
assume that the low-calorie frozen microwavable food company from assignments 1 and 2 wants to expand and has to make
you are the owner of a fast food restaurant. given a new item that you recently advertised you experience additional
currently the interest yield on short term treasury bills is near zero. longer term rates for mortgages are under 4.
The production processes are interchangeable, and production can be adjusted depending on market conditions. The demand for both products is highly elastic in terms of price elasticity, and customers perceive the two products as close substitutes f..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd