Apple normally sells 300 million ipods @ $150 each. Its variable cost is $35 each. The price elasticity is -0.8. It is considering a price increase of 10%. Calculate how the gross profit and sales revenue will change. Show you calculations.Tesla normally sells 3000 cars @ $45,000 each. Its variable cost is $35,000 each. The price elasticity is -0.95. It is considering a price decrease of $3000. Calculate how the gross profit and sales revenue will change. Show you calculations.UCR normally sells 5 used laptops @ $100 each. Its variable cost is $30 each. The price elasticity is -1.6. It is considering a price increase of 10%. Calculate how the gross profit and sales revenue will change. Show you calculations.

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Answered: Apple normally sells 300 million ipods…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 13PAE

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Apple normally sells 300 million ipods @ $150 each. Its variable cost is $35 each. The price elasticity is -0.8. It is considering a price increase of 10%. Calculate how the gross profit and sales revenue will change. Show you calculations.
Tesla normally sells 3000 cars @ $45,000 each. Its variable cost is $35,000 each. The price elasticity is -0.95. It is considering a price decrease of $3000. Calculate how the gross profit and sales revenue will change. Show you calculations.
UCR normally sells 5 used laptops @ $100 each. Its variable cost is $30 each. The price elasticity is -1.6. It is considering a price increase of 10%. Calculate how the gross profit and sales revenue will change. Show you calculations.

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