What is his desired markup and what is initial actual markup

Reference no: EM133494482

Problem

I. Elasticity of T-Shirt Sales

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?

II. Increasing Movie Ticket Prices

To conduct an experiment, AMC increased movie ticket prices from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of increasing prices?

Reference no: EM133494482

Questions Cloud

Collaborations in health care service systems : What are some examples of the value in partnerships and collaborations in health care service systems?

Different from friendships outside the workplace : different from friendships outside the workplace? In what ways are they similar? Which kind of relationship is more challenging to maintain

Analyze the impact of industrialization on society : Analyze the impact of industrialization on society from the late 18th century to the early 20th century and evaluate whether its overall impact was positive.

What are some examples of these collaborative efforts : What are some examples of these collaborative efforts by pharmaceutical companies (e.g., Accelerated Medical Partnership (AMP) program)

What is his desired markup and what is initial actual markup : If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?

How can this are of study impact your current : What questions does descriptive epidemiology enable us to answer? Provide examples of how descriptive epidemiology uses person, place, and time information

Where do historians link the ride of the new right : During the Reagan administration, how much would the Pentagon spend per hour on military spending?

Define probability and impacts section of risk management : Prepare the scope and objectives of the Risk Management Process section of the Risk Management Plan, based on the facts presented in the case study.

What is common courtesy : What is common courtesy? How it can be applied to healthcare interactions to build good coworker relationships

User Account

All Pages