Echo’s revenue jumped 23 percent year over year in the third quarter to $691.5 million after declining 7 percent in the second quarter, as retail and industrial freight demand increased. “We’ve had strong truckload market conditions ever since the trough in April,” Waggoner said. Q3 truckload volume was up 13.6 percent from a year ago, and truckload revenue 32.3 percent. Can you infer the truckload average price change from the data above? Given these numbers, how much should the truckload volume increase for the prices to go back to where they were a year ago if the price elasticity of demand is -2?
Echo’s revenue jumped 23 percent year over year in the third quarter to $691.5 million after declining 7 percent in the second quarter, as retail and industrial freight demand increased. “We’ve had strong truckload market conditions ever since the trough in April,” Waggoner said. Q3 truckload volume was up 13.6 percent from a year ago, and truckload revenue 32.3 percent. Can you infer the truckload average price change from the data above? Given these numbers, how much should the truckload volume increase for the prices to go back to where they were a year ago if the price elasticity of demand is -2?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Echo’s revenue jumped 23 percent year over year in the third quarter to $691.5 million after declining 7 percent in the second quarter, as retail and industrial freight demand increased. “We’ve had strong truckload market conditions ever since the trough in April,” Waggoner said. Q3 truckload volume was up 13.6 percent from a year ago, and truckload revenue 32.3 percent.
Can you infer the truckload average price change from the data above?
Given these numbers, how much should the truckload volume increase for the prices to go back to where they were a year ago if the price elasticity of demand is -2?
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