What will be the revenue and profit

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The Really Annoying owners see the change in profits from the price decrease in May and the projection for June. They decide to go back to a price of $10.00 and have 31,000 deliveries in June. They decide that they are only willing to manage enough bicycle messengers to support 31,000 deliveries at a price of $10.00. However, if they raised price to $11.00 per delivery, they would be willing to hire and manage enough messengers to make 45,000 deliveries in July. Calculate the Elasticity of Supply. Is it elastic or inelastic? How many deliveries will Really Annoying have at a price of $11.00? Hint: you can only sell what customers will buy. Use the original the elasticity of demand calculated in 1 above. What will be the Revenue? What will be the Profit? Should Really Annoying Bicycle Messenger Company raise the price to $11.00? Why or why not?

Reference no: EM131424569

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