compute the following price elasticities of demand, Microeconomics

compute the following price elasticities of demand, Microeconomics

Assignment Help:

#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
• The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.
Of the above examples, which are more elastic, and which is the least elastic? Why? Answer the following questions:
• Why is elasticity an important concept for a business?
o Bridge tolls
o Beachfront properties
o Gourmet coffee
o Gasoline
o Cell phones
Now that you are an expert on elasticity’s, what do you think would be the best time of year to raise prices, and why?
What do you think the elasticity’s are in the flower business?

Related Discussions:- compute the following price elasticities of demand

Managerial theories of the firms, Managerial theories of the firms

Managerial theories of the firms

Budget Line, if coast of good A fall by Rs.1 & coast of good B increases by...

if coast of good A fall by Rs.1 & coast of good B increases by 1 Rs. what will be the effect on budget line

Trade, Ask question #Minim1. what items should be put on the agenda of a ne...

Ask question #Minim1. what items should be put on the agenda of a new round of trade talks (and who wants these on the agenda), 2. why, and 3. the problems likely to be met in the

Balance of payments and problem of deficits, BALANCE OF PAYMENTS AND PROBLE...

BALANCE OF PAYMENTS AND PROBLEM OF DEFICITS: The principal tool for the analysis of the monetary aspects of international trade is the balance of international payments set

Lambs lay a golden egg, Assume that the market for lamb is perfectly compet...

Assume that the market for lamb is perfectly competitive. Using an appropriate model (or models) illustrate and explain a. How a competitive market arrives at equilibrium

Macroeconomics, What is inflation gap

What is inflation gap

Calculates benefit cost ratio using current dollars, When there is a positi...

When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take o

Production with two variable inputs, isoquants curve shows

isoquants curve shows

Demand and supply, what will be the effect on price and quantity when suppl...

what will be the effect on price and quantity when supply and demand changes in different directions but same magnitude?

Theory of product pricing, what is theory of product pricing?

what is theory of product pricing?

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd