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- QUESTION TWO X limited is a company producing two products A and B. The Marketing Manager has the following information for the products for the first quarter of 2020: Product Demand (Units) Price (K`000) January March January March A 30 15 10 12 B 25 30 10 2 The Marketing Manager wants to establish the Price Elasticity of Demand (PED) of the two products and strategize for increase in sales revenue. Required: (a) Define Price Elasticity of Demand (PED) (b) Calculate PED for Product A at price K5,000 per unit (c) Explain the significance of PED for the Marketing Manager in a country like Zambia. (d) On the basis of PED for each product the Marketing Manager wants to increase sales revenue for both products.(i) Interpret the results and (ii) Indicate the strategic option available for the manager as the projects increase in sales revenue.079333#c374ae27-594f-46ec-8504-285b126cc8b9 - Весса Saveu Question 5 10/11 answered Question 6 If the market price for i-Pads saw an increase of 20% and the elasticity of supply is 0.75, we can expect the change in the quantity sold to be .... (give the answer in a percent but don't put the % sign) Typed numeric answer will be automatically saved. Answers are saved automatically =S Suppose maple syrup and waffles have a cross price elasticity of (-0.75). This would make these goods □Problem 1: American Company is interested in obtaining quick estimates of the supply and demand curves for coal. The firm's research department informs you that the elasticity of supply is approximatively 1.7, the elasticity of demand is approximatively -0.85, and the current price and quantity are $41 and 1,206 respectively. Price is measured in dollars per ton, quantity the number of tons per week. a. Find the supply and demand equations b. Calculate the new demand curve if the demand shifted by + 5%. c. If the government refused to let Americans raise the price when demand increased in (b) above, what shortage is created? d. Show the shortage in a graph. Label your graph.
- Engineer need to consider the demand of the product while making business decisions. List the major purpose of demand analysis from the standpoint of business management. Can a manager manipulate all the variables which affect demand, Explain in detail along with different concepts of elasticity of?Qd= 25000-2p Qs= 10000-1p Calculate the market equlibrium level of price and quantity for housing unit? Calculate price elasticity of demand using point elasticity method when industry is in equlibrium and interpret the result?The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105e3p- + 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 ¥700. E = Interpret your answer. The demand is going down v is advised. by % per 1% increase in price at that price level. Thus, a large price decrease (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 month
- Given the existing problems with its airbag system, Honda Motors has experienced a decline in sales of its Accord automobileThe Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales 2006 2007 2008 0 0.22 -0.38 -0.22 The arc price elasticity of demand between 2006 and 2007 is: -8.11 -3.53 525 3.53 450 0 400 The arc income elasticity of demand between 2007 and 2008 is: Average Price (Dollars) 16,800 8,000 8,000 Disposable Constant Income (In constant 2006 dollars, billions) 610 610 Aircraft Sales 2009 Forecast: Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc income…If decrease in Demand is smaller than decrease in Supply, what happens to equilibrium price and output sales? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Currently, the exchange rate is 100 yen per dollar. InJapan, we sell a product that costs $5 to produce for 700yen. The product has an elasticity of 3. For exchange ratesvarying from 70 to 130 yen per dollar, determine the optimalproduct price in Japan and the profit in dollars. Assume alinear demand curve. Current demand is assumed to equal100.Worldwide annual sales of smartphones over two year period were approximately q=-5p+3040 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E=_______ (b) in one of the years the actual selling price was $375 per phone. What was the corresponding price elasticity of demand? E=_______ The demand was going down by about _____% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $_______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places) $_____billionA multi-plex theatre area is experiencing a decline in the number of ticketssold, falling revenues, and inadequate profits. The average price of a ticketis $20 and there are 1000 tickets sold daily on average. The estimated priceelasticity of demand is 1.5 and the theatre currently operating at an averageof 75 percent of capacity. There are three proposals in front of themanagement to consider:Proposal A: Proposal B: an aggressive advertising campaign (which is expected to reduce the elasticity of demand to 1), and a 10 percent increase in the average price of a ticket.