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1. Suppose you are the economic adviser of a company producing three brands of mobile piones; Nekia 10, Samsung X and iPhone Z. Suppose further that, your company currently sells 120 units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units of Nokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing director proposes an increase in price of Samsung X from c800 to e1000 per unit for which quantity demanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e1200 per unit for which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from e100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 units. Using the mid-point formula, compute the price elasticity of demand for cach brand. From your answer in i, what is the type and economic interpretation of cach brand's value of elasticity.

1. Suppose you are the economic adviser of a company producing three brands of mobile piones; Nekia 10, Samsung X and iPhone Z. Suppose further that, your company currently sells 120 units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units of Nokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing director proposes an increase in price of Samsung X from c800 to e1000 per unit for which quantity demanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e1200 per unit for which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from e100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 units. Using the mid-point formula, compute the price elasticity of demand for cach brand. From your answer in i, what is the type and economic interpretation of cach brand's value of elasticity.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Suppose you are the economic adviser of a company producing three brands of mobile pones; Nokia 10, Samsung X and iPhone Z. Suppose further that, your company eurrently sells 120 units of iPhone Z at ¢800 per unit, 150 units of Samsung X at ¢800 per unit and 200 units of Nokia 10 at ¢100 per unit, but in a bid to maximize profit, the company's managing director proposes an increase in price of Samsung X from e 800 to e1000 per unit for which quantity demanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e1200 per unit for which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from e100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 units. . Using the mid-point formula, compute the price elasticity of demand for each brand. From your answer in i, what is the type and economic interpretation of each brand's value of elasticity, i. 2. i. Briefly explain any three key features of a Perfect Competitive and a Monopolistic market i. Show what happens to a monopoly firm operating in the long-run.
Transcribed Image Text:1. Suppose you are the economic adviser of a company producing three brands of mobile pones; Nokia 10, Samsung X and iPhone Z. Suppose further that, your company eurrently sells 120 units of iPhone Z at ¢800 per unit, 150 units of Samsung X at ¢800 per unit and 200 units of Nokia 10 at ¢100 per unit, but in a bid to maximize profit, the company's managing director proposes an increase in price of Samsung X from e 800 to e1000 per unit for which quantity demanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e1200 per unit for which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from e100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 units. . Using the mid-point formula, compute the price elasticity of demand for each brand. From your answer in i, what is the type and economic interpretation of each brand's value of elasticity, i. 2. i. Briefly explain any three key features of a Perfect Competitive and a Monopolistic market i. Show what happens to a monopoly firm operating in the long-run.
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