What is the cross price elasticity of demand

Assignment Help Electrical Engineering

Reference no: EM13218944

XYZ Corporation is a manufacturer of widgets. Over the past several months, it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month. This month its competitor, ABC, Inc. raised the price of its widgets from $100 to $110. XYZ noted that its unit sales increased by 200 units.

a. What is the cross price elasticity of demand between XYZ's and AB C's widgets?

b. If XYZ knows that the price elasticity of demand for its widgets is -2.0, what price would XYZ be able to charge and still sell 5,000 widgets, assuming ABC keeps its price at $110?

Reference no: EM13218944

Questions Cloud

Would the cards count as part of the money supply : Many colleges sell special cards that students can use to purchase everything from textbooks or meals in the cafeteria to use of washing machines in the dorm. Students deposit money in their cards; as they use their cards for purchases.

What is the difference in proportions in the original data : What is the difference in proportions in the original data and what is the p-value and what does it mean in terms of this specific problem

Difference between respect for authority and blind obedience : What is the difference between respect for authority and blind obedience? How do you tell the difference?

Explain the cash method of accounting : Although the company maintains a certain level of plumbing supplies for its business inventory it is not a material income producing factor; thus, material purchases are expenses. The partnership uses the cash method of accounting for revenue and ..

What is the cross price elasticity of demand : What is the cross price elasticity of demand between XYZ's and AB C's widgets?

Aisan americans and pacific islanders aer a model minority : If someone told you (a) Aisan Americans and Pacific Islanders aer a model minority , and (b) Asians Americans and Pacific Islanders belong to a single Asian American culture, what do you say to them to convince them both statements are misconceptions

What level of output maximizes the firms profits : Complete the chart below for a firm that is operating under conditions of perfect competition where the market price is $22. What level of output maximizes the firm's profits Quantity -21,22,23,24 Price Total Revenue Marginal Revenue

Use the magnetization curve : Determine the battery voltage required to obtain a flux density of 1.2 T in the air gap. Use the magnetization curve.

Are either credit cards or debit cards money : Debit cards allow an individual to transfer funds directly in a checkable account to a merchant without writing a check. How is this different from the way credit cards work Are either credit cards or debit cards money Explain.

User Account

All Pages