If the price elasticity of demand is -0.8 and the firm increases price, revenue will O a. Increase O b. Decrease O c. Stay constant d. become zero, they would lose all their customers
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- Snooki, a new marketing intern, was a little scatterbrained during the first meeting with her manager, when she made four statements about pricing. Which one of her four statements about pricing was correct? a. A product with an elastic demand is likely to face little competition. b. An EDLP retailer offers many price promotions. c. A product with an elasticity of demand of -0.7 will enjoy increases in revenue when prices are cut. d. Cost-plus pricing is not the perfect pricing strategy because the pricing method ignores customers’ willingness to pay and competitors’ pricing strategy.suppose a pharmaceutical company considers increasing the price of insulin tm $125 per vial to $300 per vial. whenthe price was $125, the company sold 100, 000 vials per day. the company knows its price elasticity is .25. calculate thepercentage change in quantity demanded that would result in a price elasticity of .25. show your workPoints Price Qty Demanded A 50 150 B 45 200 C 40 250 D 35 300 E 30 350 F 25 400 G 20 450 H 15 500 I 10 550 Please add a fourth column for Total revenue and a fifth column for Price Elasticity of Demand The income of Mr. De la Cruz increased from P300 to P450 a day. His demand for grocery items increased from 200 to 500. Compute for his income elasticity of demand. The price of product A increased from P20 to P40. The demand for Product B went up from 100 to 200. Calculate the cross elasticity of demand.
- Question 2 Bowleg flips houses. He advertises to sell houses at $40000 per house. He sells 500 houses. He raises the price to $60000 and sells 400 houses. What is the elasticity of demand?Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 What will happen to sales for long-distance telephone if its price increases by 5% and income increases by 8%? Select one: a. Sales will decrease by 5%. b. Sales will increase by 5%. c. Sales will decrease by 8%. d. Sales will increase by 8%.20. The next year revenue budget for Josiah’s department calls for an increase of 20%. After a great deal of research, he has determined that the price elasticity for his best-selling products is 1.25. In this situation, Josiah should take which following action in order to increase revenue from these products? Group of answer choices a. Keep the prices the same b. Offer a buy one/get one sale c. Decrease prices d. Raise prices
- The dealer increase price of TV by 5 percent then quantity increase by 10 percent. find the elasticity of demand.When Maha earned AED 17,000 per month, he used to spend 1,000 dirham a months in supermarket A. Now that he earns AED 28,000 per month, he spends 1200 dirham in supermarket A every month. A. Calculate income elasticity of demand B. What type of products do supermarket A sells according to your result in A? Explain.Breakfast A price number sold per week (AED) 55 100 60 95 65 93 70 86 In a cafeteria Ibrahim found the data above with a very popular breakfast that they sell. A. Calculate the total revenue with every price of the breakfast (4 B. What is the maximum revenue possible? C. Using the standard formula, calculate the price elasticity of demand when the price changes from 60 to 65 dirham. D. According to your results in A, B and C, what is the best decision that Ibrahim should take about the price he should charge for the breakfast Mac)
- For a firm with the market power, the perfect maximize and price of a product is______ to the absolute value of the demand elasticity A directly related B. Not related C. Logarithmically related D. Inversely related1. The sylvan corporation has estimated the pice elasticity of demand for synthetic wood sorrel to be -0.25. a. If the price of sylvan's wood sorrel increases by 10% what will happen to the quantity demanded of wood hewers. b. What will happen to sylvan revenue as a result of price increase?Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625 customers per week. During a recent promotion on the eve of India’s Independence Day , Shalimarcut its price to INR 25 each and observed an increase in sales to 750 plates per week.a. Calculate Shalimar’s price elasticity of Demand b. Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc. How many plates should Shalimar expect to sell at the new price?d. Does the move make sense in the light of Shalimar’s intent to increase revenue?
