Reference no: EM13924679
1. When the price of souvenir t-shirts increased from $10 to $11, the quantity of t-shirts demanded decreased from 100 to 87 a week. Using theMid-Point Method(page 99), what is the price elasticity of demand for the t-shirts? Explain why the demand is elastic or inelastic (not just that it is greater or less than one, but what about them makes the demand elastic or inelastic)?Show your work. If you are unsure about how to determine percentages, review the appendix to Chapter One. Name a product you regularly purchase for which you have an inelastic demand and one for which you have an elastic demand. What determines whether your demand is elastic or inelastic for these products?
2. Let's say the current administration decides to make a college education more affordable, so they establish a price ceiling of $50 per credit hour for community colleges, $75 per credit hour for four year institutions, and $100 per credit hour for graduate classes. What is a price ceiling and what effect does it have on the market? List and explain several positive and or negative consequences of this action. What would happen to producer and consumer surplus?
3. The author defines market equilibrium as generating the largest possible total surpluses and being efficient when four conditions are met. What is meant by "total surpluses", and what are the four conditions that must be met? Can you name a market in which these conditions exist?
4. Critical Thinking: Let's say your company sells units of salt for $1.00 and wants to increase its revenue by raising the price to $1.20 per unit. We know, from the table on page 102, the price elasticity of demand for salt is 0.1. A member of marketing says that means if we raise price 20%, we will see a 2% reduction in sales. Is there anything wrong with this reasoning? Discuss what is right and wrong with this conclusion.
No words limit!
|
The market rate of interest for similar investments
: Ivy Inc. issued callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
|
|
Company as the corporate controller
: You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, a 25% increase fr..
|
|
Estimated monthly variable costs using the high-low method
: Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: January February March April May June July Number of rooms cleaned 25..
|
|
Significance of the research study for particular audiences
: Continue to identify and/or refine a research problem to be studied. Explain the significance of the research study for particular audiences
|
|
What is the price elasticity of demand for the t-shirts
: The author defines market equilibrium as generating the largest possible total surpluses and being efficient when four conditions are met. What is meant by "total surpluses", and what are the four conditions that must be met? Can you name a market..
|
|
Conventional departmental organization by function
: Production starts in the drilling department, where each fitting requires an average of one minute on a CNC machine. Because of the length of time required to set up a CNC machine to produce a certain model, the fittings are produced in batches of 2,..
|
|
Ethics reflection paper
: Ethics and social responsibility are integral components in developing a strategic plan while considering stakeholder needs. As such, ethics and social responsibility should be deemed as an essential strategic concern within all organizations.
|
|
Standard costs of products produced in same production cell
: Standard costs of products produced in the same production cell. Colt Controls has a lean production cell dedicated to producing product A, a small circuit board. They have decided to produce a second circuit board, product B, in the same production ..
|
|
Characterize pastoral societies
: 1. Nomadic pastoralists have permanent settlements; and complete households shift location with the herd. House structures are highly stable, such as a tent or yurt.
|