A theatre charges 12$ per tickets for musical shows. Average attendance at these shows is 16,000. However, last year they charged 13$ and the average attendances were 13,5000. Required Assuming attendance to be purely price dependent. What is demand function for the theatre?
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- The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomacs closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. What is the arc cross elasticity of demand between Potomacs oven and the competitive Spring City model? Would you say that these two firms are very dose competitors? What other factors could have influenced the observed relationship? If Potomac knows that the arc price elasticity of demand for its ovens is 3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?M10. A theatre charges 12$ per tickets for musical shows. Average attendance at these shows is 16,000. However, last year they charged 13$ and the average attendances were 13,5000. Required Assuming attendance to be purely price dependent. What is demand function for the theatre?Problem 03-06 (algo) You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Yand 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 1 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign. GA
- 15.5 (0) The demand function for drangles is q(p) = (p+ 1)-2. (a) What is the price elasticity of demand at price p? (b) At what price is the price elasticity of demand for drangles equal to -1?. (c) Write an expression for total revenue from the sale of drangles as a function of their price. the revenue-maximizing price. Don't forget to check the second-order Use calculus to find condition.. (d) Suppose that the demand function for drangles takes the more general form q(p) = (p+a)-b where a > 0 and b > 1. Calculate an expression for the price elasticity of demand at price p. At what price is the price elasticity of demand equal to –1?_ -The manager of the Sell-Rite drug store accidentally mismarked a shipment of 20-pound bags of charcoal at $4.38 instead of the regular price of $5.18. At the end of a week, the store's inventory of 200 bags of charcoal was completely sold out. The store normally sells an average of 150 bags per week. (a)What is the store's arc elasticity of demand for charcoal? (b)Give an economic interpretation of the numerical value obtained in part (a)A company produces a special new type of TV. The company has fixed costs of $468,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2100. Assume a linear demand. What price should the company charge to earn a profit of $742,000?
- Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price? (Hint: apply the mark-up rule) (600-700 words)Company XYZ has developed a new product called ABC. The market demand for this product is given as follows: Q = 360 - 4P a. At what values of price (P) and quantity (Q) is the demand perfectly inelastic, i.e. price elasticity of demand equals zero? b. At what values of price (P) and quantity (Q) is demand infinitely elastic, i.e. price elasticity of demand equals infinity? c. At what values of price (P) and quantity (Q) is the price elasticity of demand equal to one? d. If product ABC is priced at $40, what is the point price elasticity of demand? Is the demand, at this point, elastic or inelastic?George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?
- Suppose you own a tax preparation services company, with fixed costs of $3,000/month and marginal costs of $25/appt.If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760appointments would be sold. a.)Use these figures to calculate the price elasticity of demand for your services. b.)Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.)Given these calculations, what price should you charge for your services, $50/apptor $60/appt? ExplainThe market demand for electricity in a city has the following schedule: Price Total Quantity (kwh) Average Marginal Revenue Revenue Revenue ($/kwh) 14 12.50 1 11 9.50 8 4 6.50Please Help The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.10 and is 1.60 other days of the year. If Rosie's Roses faces a constant marginal cost of $0.75 per rose, what is the profit-maximizing off-peak load price to charge on days not on the week of Valentine's Day? 1)$5.00 2)$1.25 3)$8.50 4)$2.00 If Happy Campers has a market share of 70 percent and Campers R Us has a market share of 5 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm and Campers R Us ________ be considered a dominant firm. 1)would; would 2)would not; would not 3)would not; would 4)would; would not If an illegal per se act has been proven to have occurred, there is no defense possible. 1)True 2)False A manager of a firm located in the United States that sells some of its products abroad needs to comply only with United States antitrust law as the firm is only bound by the laws of the country in which it is located. 1)True 2)False…