The price of product A was reduced from PhP100 to PhP80 pesos and, as a result, the quantity demanded has increased from 50 to 70 units. The price elasticity of demand is equal to _________ which is _____( inelastic, elastic, unit elastic).
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The price of product A was reduced from PhP100 to PhP80 pesos and, as a result, the quantity demanded has increased from 50 to 70 units. The
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- Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries. Microsoft sells Excel at different prices in U.S., Japan and Europe. Before the price cut U.S. sales were twice sales in Japan and Europe. If the price of elasticity of demand in the U.S., Japan and Europe are -3, -4, and -2 respectively, the worldwide sales rise by A) 10%. B) 15%. C) 20%. D) 25%. I know that the answer is C but i want to know how to get itWorldwide annual sales of smartphones over a two year period were approximately q -4p+3,060 million phones at a selling price of sp per phone. E= (b) In one of the years the actual selling price was $325 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal place Interpret your answer. The demand was going by about % per 1% increase in at that price level (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What would have been the resulting annual revenue? (Round your answer to two decimal places.)John, a restaurant consulting firm estimates that in Accra a 10% reduction in the price of roasted groundnut will increase kelewele demand by 20%. The restaurant further estimates that a 10% reduction in price of roasted plantain will decrease kelewele by 15%. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted groundnut. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted plantain.
- If price elasticity of demand is -4 then it means demand falls by 4% due to:- (1) 1% rise in price (2) 4% rise in price (3) 1% fall in price (4) 4% fall in price.It was observed in a particular supermarket that after the price of good X dropped from 20 pesos to 17.50 pesos, the weekly demand for the said products increased from 150 units to 220 units. Solve for the Price Elasticity of Demand, then identify whether the consumer demand for good X is elastic, inelastic, or unit elastic.Company A sells 100,000 bicycles each year at RM250 per bicycle. From past experience, the manager of Company ABC believes the price elasticity of the company’s bicycles is approximately - 0.8. The manager is thinking of increasing the bicycle’s prices to RM300 per bicycle, an increase of 20%. Question 1: Calculate the anticipated % change in the company’s sales volume. Question 2:Calculate the new total revenue. Question 3: Should the manager of company ABC change his pricing strategy? Justify your answer
- A weekly income of a clerk was increased from N100 to N125 as a result of his promotion in the office. He is able to purchase 300 leaves of bread instead of 200 per week (1) Calculate the co-efficient of his income elasticity of demand. (2) Is the demand elastic or inclastic? Why? (3) What kind of goods is bread to the consumer?Given the demand equation x = 135e-P/46, where p represents the price in dollars and x the number of units, determine the value of p where the elasticity of demand is unitary. p = dollarsSolve for demand price elasticity when price is at Php. 18
- Given a 10% fall in petroleum price and a 6.2 percent rise in daily wage paid to hired labour used for the production of rice. Estimate the net effect of these changes on the production of rice, given that the elasticities of production due to petroleum price and dialy wage are 1.15 and 1.25 respectively.The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥400. E = _____ Interpret your answer. The demand is going down/up by ____ % per 1% increase in price at that price level. Thus, a large price decrease/increase is advised. (b) At what price will revenue be a maximum? ____ hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) ______ paint-by-number sets per monthDemand for one of OHaganBooks.com's other best-seller, The Secret Love of John O, is given by -7.01393 copies sold per week when the price is dollars. Find the price elasticity of demand as a function of and use it do determine the elasticity of demand for this book at a price of $20. (Round to two decimal places as needed.)
