a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 6.50 1 6.00 2 5.50 3 5.00 4 4.50 4.00 6 3.50 7 3.00 8 2.50 9 b. Plot the demand, TR, and MR curves. Instructions: Use the tool provided 'MR' to draw the marginal-revenue curve (plot 9 points total). Then use the tools provided 'TR' and 'D' to plot the total-revenue curve (TR) and the demand curve (D) (plot 10 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve.. 26 Tools 24 22 20 TR D 18 16 14 MR 12 10 2 -2 E 1 3 6. 7 8 10 Quantity TR, price ($) ulululul .

a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 6.50 1 6.00 2 5.50 3 5.00 4 4.50 4.00 6 3.50 7 3.00 8 2.50 9 b. Plot the demand, TR, and MR curves. Instructions: Use the tool provided 'MR' to draw the marginal-revenue curve (plot 9 points total). Then use the tools provided 'TR' and 'D' to plot the total-revenue curve (TR) and the demand curve (D) (plot 10 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve.. 26 Tools 24 22 20 TR D 18 16 14 MR 12 10 2 -2 E 1 3 6. 7 8 10 Quantity TR, price ($) ulululul .

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.1CE

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2. At the price of $15, Zeke were able to sell 7,000 ball pens. When he increased the price by $10, he sold only 5,000 pens. What is the demand elasticity? If his marginal cost is $3 per pen, what is his desired markup and what is his initial actual markup? Was raising the price profitable?
A) What is the profit-maximizing price? B) What is the profit-maximizing quantity? C) What is total revenue at the profit-maximizing quantity?
Points 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.
Price of Good X(Px) Quantity of Good X(Qx) Own Price Elasticity Total Revenue 0 100 0.00 0 5 90 −0.11 450 A 80 −0.25 800 15 70 −0.43 1050 20 60 −0.67 1200 25 50 C 1250 30 B −1.50 1200 35 30 −2.33 1050 40 20 −4.00 D 45 10 −9.00 450 50 0 −∞ 0 The demand function in the accompanying table is QXd = 100 − 2PX. Based on this information, compute the own price elasticity of demand when PX = $25 (point C).
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.
MIcro: The company “Mike Broonie” operates in the market of monopolistic competition. Just now, the company weekly produces and sells 100 units of pillows for £12 each. The average total cost to produce the pillows doesn’t depend on the output, being £10 per unit. Having evaluated the price elasticity of demand for its product, the company concluded that demand is inelastic at the moment. a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”. b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated forecast. To increase the number of points…
25) What is the profit-maximizing price? 26) What is the profit-maximizing quantity? 27) What is total revenue at the profit-maximizing quantity?
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%.
5. After expanding expenditures on its 'blind taste test' ad campaign from $10 million to $15 million per month, 7up Inc. observes that sales quantity last month fell from 120 million bottles to 110 million bottles. a. What is the advertising elasticity of demand? MA = b. What can you say from this elasticity about their current advertising campaign?
1) What is the profit-maximizing price?2) What is the profit-maximizing quantity?3) What is total revenue at the profit-maximizing quantity?
If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for everyone (adults and children). His friend Ali who studied economics course in CCBA advises him that there may be another way of increasing your total revenue. Given the demand curves (adult demand and child demand) shown, Adult Demand Child Demand Price Price $10 $10 8. 7 7 6 5 4 3 3 2 1 1 10 20 30 40 50 60 70 80 90 100 Quantity 10 15 20 25 30 35 40 45 50 Quantity Answer the following questions from the above two curves. a. What is Omer's current total revenue for both groups (adults and children)? b. Which market has the more inelastic demand? d. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?
IN OWN WORDS, about 200 to 400, Discuss the price elasticity of liquor products of.a liquor company. Explain how the company's strategies (revenue and profit) would be affected by price elasticity. will give a downvote for plagiarised answer.