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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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