2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the%AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?3: Mamon's bakery is famous for its Banana muffins. If they will increase the price from P10 to P15 andthe price elasticity of supply is 1.5. How much will the %AQ? Suggest ways to maximize profit.4: Company X developed a mobile application that could track monthly expenses of households. If thelaunching price is P500 and due to good response from the market the company strategist suggested toincrease the price to P700.lf the %AQ= 30%. As the CEO, will you approve the price increase?

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2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the %AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the
%AP? Why do you think nanay flor's service is inelastic? How can she maximize profit?
3: Mamon's bakery is famous for its Banana muffins. If they will increase the price from P10 to P15 and
the price elasticity of supply is 1.5. How much will the %AQ? Suggest ways to maximize profit.
4: Company X developed a mobile application that could track monthly expenses of households. If the
launching price is P500 and due to good response from the market the company strategist suggested to
increase the price to P700.lf the %AQ= 30%. As the CEO, will you approve the price increase?

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