Your firm, Content Colleague, is similar to Happy Worker, a Canadian company that designs and manufactures toys and collectibles Your research analyst has estimated the demand function for your stuffed toy animals is: Q=40 million- (3 million x P). If you set the price of a plush toy at $5, the number of toys that consumers will buy is million. If you increase the price of a plush toy by $1, the quantity of toys bought by consumers will by million.
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- 1.5 Your firm, Content Friend, is similar to Happy Labourer, a Ghanaian firm that designs and manufactures artifacts and souvenirs. Your research analyst has estimated the demand function for your kente souvenirs is Qd = 33 - 4P If you set the price of a plush kente souvenir at $5, how many will consumers buy? If you increase the price of a plush kente souvenir by $1, how will this change the quantity that your customers buy?Your firm, Content Colleague, is similar to Happy Worker, a Canadian company that designs and manufactures toys and collectibles. Your research analyst has estimated the demand function for your stuffed toy animals is: If you set the price of a plush toy at $6, the number of toys that consumers will buy is [ million. Q=30 million - (4 million x P).A local pizza owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The economic consultant estimates that the price elasticity of demand is equal to -0.5, and suggests that the shop owner should increase the price of a slice of pizza by $0.25; that is, the consultant recommends increasing the price of pizza by %. The consultant claims that doing so would result in a decrease in the number of slices sold by and result in 수 in revenue.
- Suppose that at a price of $1 per subscription, 100,000 subscriptions are demanded for The Post-Standard (the major daily newspaper servicing the greater Syracuse, New York). But, if the price is raised to $1.1, demand is 70,000 subscriptions. As the head of the analytic team, will you suggest to the editor of Post- Standard that an increase in subscription price will not significantly influence consumer demand? E = |-3|>10Elastic demand (an increase in subscription price will significantly influence consumer demand)Market researchers estimate that the annual demand for ice cream in Gotham city is: qi = (200,000Pp1/4)/ (Pi3/2Pb1/2) where qi is the quantity demanded for ice cream in scoops, Pp is the price serving of pudding, Pb is the price per serving of brownies, and Pi is the price per scoop of ice cream. a. What does the cross-price elasticity of demand equal between ice cream and brownies? b. What type of commodities are ice cream and brownies?You were promoted as the manager of a new Clean-Well Sanitary Store that sells cleaning and sanitation products wholesale. You recently read in an article that there the price of vitamins is expected to increase by 20 percent. How will this affect your store’s sales of sanitation products? Items Selected Cross price elasticity Food supplements 0.34 Medicines 0.56 Foods 0.09
- A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD's. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD's. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD's compliments or substitutes? Does your answer make sense? Explain.The product that I'll choose in this example are cigarettes. The price elasticity of demand for cigarettes is -0.87, meaning that a 10% price increase would lead to an 8.7% decrease in quantity demanded. The availability of substitutes is a key factor driving the price elasticity of demand for cigarettes. There are many substitutes for cigarettes, such as e-cigarettes, nicotine patches, or even marijuana. When the price of cigarettes rises, consumers can choose to switch to these substitutes or quit smoking altogether. The availability of substitutes makes consumers more sensitive to price changes, leading to a relatively elastic demand for cigarettes. do you think the product would ever go on sale? Why or why not?Suppose that you are a staff economist with an economic consulting firm. The operator of a local harbour has commissioned your firm to do a market analysis of the demand for berths (parking spaces) for boats. Your firm finds that the price elasticity of demand for berths is –0.8. If the price of a berth in the area decreases by 6%, how will the quantity of berths that people demand change? The number of berths demanded will: Increase by 0.8% Decrease by 7.5% Increase by 6% Increase by 4.8%
- Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMS) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be: addesktop = 1600 – 2Pdesktop + 0.6M (in millons of units), where Pdesktop is the price of a desktop system and M is consumer Income. The same article reported that the incomes of the desktop system's primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year's projected demand for 32 GB desktop memory modules is: admemory = 1,200 - 100Pmemory - 2Pdesktop (n thousands of units), where Pmemory is the market price for a 32 GB memory module and Pdesktop is the selling price of a desktop system. The report also indicated that five new, small…You are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -3, and the cross-price elasticity of demand between product Y and X is 1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?Required information You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3 and the cross-price elasticity of demand between products Y and X is −1.6. Suppose you increase the price of good X by 2 percent. Assume that the information about product X and product Y from the problem changed to the following: Revenues per year from product X $ 15,000 Revenues per year from product Y $ 80,000 Own price elasticity of demand for product X −3 Cross-price elasticity of demand between products X and Y −1.4 Price increase of product X (percent) 3 Instruction: Update the data in your spreadsheet to the values above and enter the recomputed answer for the original question. Required: How much will your firm’s total revenues (revenues from both products) change? Change in revenues: ____________________