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!
Summer Ice, a company that specializes in ice gelato treats wishes to raise its total revenue. It can identify two different groups of buyers: children and adults. Currently its ice gelato treats are uniformly priced at $2.00 per serving. Summer Ice is considering reducing the price of its treats to $1 (a 67% decrease in price using the mid-point method). From its market research, it knows that the two groups of buyers are likely to respond according to the data in the table below:
Price
Quantity demanded by children QDC
Quantity demanded by adults QDA
$2
150
125
$1
400
175
1. What is the price elasticity of demand for each of these groups? (Use mid-point formula)
2. What is Summer Ice's total revenue if they sell their ice cream treats at a price of 2$
3. What is the total revenue if they sell at $1?
4. What is total revenue if they segment the market and charge $2 to adults and $1 to children? Now do the opposite and calculate if they charged children $2 and adults $1.
5. What price scheme in parts a-d results in the greatest total revenue for Summer Ice? Using your knowledge of price elasticity of demand, explain why this is the best pricing plan with regard to maximizing Summer Ice's total revenue in this market?
Imagine one of worst case scenarios realizes in October 2012, in which Greece does not belong to the eurozone any more, so Greece goes back to use of its own currency, Greek drachma.
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
rate of technological change also innovation has increased substantially. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level.
There are 4 factors that influence the price elasticity of demand: The availability of substitutes The specific nature of the good The part of income spent on the good The time consumers have to buy the good
Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development? Identify an advantage and disadvantage of..
The demand for a shake at a Juice Shop can be described by the equation: Q=1000-240P+80N, where Q denotes the number of shakes sold every day,
You are the manager of a midsized company that assembles personal computers. You purchase most components-such as random access memory (RAM)-in a comptetitve market. Based on your marketing research, consumers earnings over $75,000 purchase 1.3 ti..
In your city, there are currently three firms providing oil changes. For each firm, there is a fixed cost of $100 per day and a marginal cost of $12 per oil change. Each firm currently maximizes its profit by providing 15 oil changes per day. a. F..
a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today ?a security paying $ 50 every six months for the next five years (beginning six months from now), plus the return of the face value of $1,000 at ..
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.
gap among the most highly skilled in the population and the least skilled will begin to fall in the near future.
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