What is cross-price elasticity of burgers with chicken

Assignment Help Econometrics
Reference no: EM13242593

Taco Bell. Assume the price elasticity of tacos is 1.13, and the current price is $0.99. If we sell an average of 220/day, how will sales change if the prices goes up to $1.09? What will happen to total revenue? Our other product, burritos, has a current price of $1.29 and we sell, on average, 190/day. If we drop the price to $1.19 and then sell 224/day, what can we infer about price elasticity? Compare the price elasticity of both products and recommend a pricing strategy for each.

Fast Food. Wendy's recently changed the price of their classic Single burger from $1.39 to $1.49. Sales went from 497/day to 366/day. Across the street, the Bojangles chicken sandwich maintained its price of $1.99 but sales rose from 172/day to 188/day. What is the cross-price elasticity of burgers with chicken sandwiches? Are these products complements or substitutes and how do you know?

Reference no: EM13242593

Questions Cloud

The national security council''s 1950 : The National Security Council's (NSC) 1950 document known as NSC- 68 held that. One reason that the public's fear that economic depression would return when World War II ended was that. The 1963 report of the President's Commission on the Status of W..
The markup percentage for setting prices as a percentage : Answer the following questions using the information below: Oscar Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:
Determine the pressure : A sump pump is draining a flooded basement at the rate of 0.600 L/s, The water enters a hose with a 3.00 cm inside diameter and rises 2.50 m above the pump. What is its pressure at this point
Determine a structures natural frequency : Determine a structures natural frequency. Sketch a typical time wave response curve of such a test, then label the impact point and indicate the test piece's natural frequency on the time waveform.
What is cross-price elasticity of burgers with chicken : Our other product, burritos, has a current price of $1.29 and we sell, on average, 190/day. If we drop the price to $1.19 and then sell 224/day, what can we infer about price elasticity Compare the price elasticity of both products and recommend a..
Compute the percent composition of copper in the hydrate : Calculate the percent composition of copper in the hydrate CuSO4.5H2O based on atomic weight data.
The completed valves and the valves in ending inventory : Allocate the total costs between the completed valves and the valves in ending inventory.
In their journalistic writing-muckrakers tended to : By the time Congress recessed in June 1933, it had accomplished all of the following except. In their journalistic writing, muckrakers tended to
By how much will money-creating potential of banking system : Suppose in the banking system as a whole, demand deposits are equal to $80,000,000 and reserves are equal to $17,000,000 with a legal reserve ratio of 10%. by how much will the money-creating potential of the banking system

Reviews

Write a Review

Econometrics Questions & Answers

  What is the probability that they sold over 1000 dollar

You are the sales manager for an appliance store. You have a total of 100 sales people. 40 sales people sold $1000 or less and the rest sold over $1000. Of the 40 who sold $1000 or less, there is a 0.20 probability that the sales person was new.

  How much money nurses make

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..

  What five separate projects have calculated rates of return

Five separate projects have calculated rates of return of 7, 11, 15, 18, and 20 percent per year. An engineer wants to know which projects to accept on the basis of the rate of return. She learns from the finance department

  Can you justify the trade agreement on the basis of pareto

Country A has soil that is suited to corn production and yields 135 bushels per acre. Country B has soil that is not suited for corn and yields only 45 bushels per acre. Country A has soil that is not suited for soybean production and yields 15 bu..

  What rate of return did make on the investment

An investor bought 100 shares of stock at a cost of $10 per share. He held the stock for 15 years and then sold it for a total of $4000. For the first 3 years, he received no dividends.

  What is the total annual order and inventory holding costs

Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system helps monitor and control these SKUs. The following information is for one of the calculators that they..

  How much will be changes in mr smiths consumption

Mr. Smith has a weekly income of M = $24. Initially the prices of X and Y are both $2/unit and Mr. Smith buys 6 units each of X and Y each week, a bundle on indifference curve I0. Then, ceteris paribus, the price of X increases to $4/unit, with th..

  Calculate the equilibrium level of income and interest rate

If planned investment = 100 Government purchases and taxes are both 50 Then calculate the equilibrium level of income.Where r is the interest rate in percentage, money supply (M)is 1000 and the price level (P) is 2. What is the equilibrium interestr..

  How can variation in oil prices and observed prices be used

The DOJ does not observe firms costs and therefore assumes that marginal costs are constant and equal to c1, c2, and c3 in the three markets. a. If firms in M2 or M3 are colluding, what price will we observe

  Calculate the premium of the second policy

Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.

  What uniform monthly payment over the next 36 months

Your credit card has a current balance of $4965.20. This Balance is accruing interest at a nominal rate of 9.0% compounded monthly. Assuming you didnt spend any more on this card, what uniform monthly payment over the next 36 months would be requi..

  What is the new equilibrium wage differential

Suppose now that an advertising campaign, paid for by the employers who offer risky jobs, stresses the excitement associated with "the thrill of injury," and this campaign changes the attitudes of the work force toward being employed in a risky jo..

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