FACT: Sonic @ Co. produces sonic boom chocolates, demand for which is: D(p) 50(p+2) 2),[1] Write down the equation of the total revenue function for this firm in terms of price.[2] Derive the own price elasticity of demand.[3] Suppose, Sonic @ Co. is planning to charge $8 for each chocolate. Calculate the absolute valueof the own price elasticity of demand at this price.[4] If you were hired as a consultant for Sonic @ Co., would you advise them to charge $8 for eachchocolate at equilibrium? Clearly write YES/NO, and briefly justify your answer with requiredcalculation.[5] To complete your answer to this question, enter only the absolute value of the own priceelasticity of demand you calculated (in step [3] above) and enter the value in this blank here.

FACT: Sonic @ Co. produces sonic boom chocolates, demand for which is: D(p) = 50(p+2) 2), %3! [1] Write down the equation of the total revenue function for this firm in terms of price. [2] Derive the own price elasticity of demand. [3] Suppose, Sonic @ Co. is planning to charge $8 for each chocolate. Calculate the absolute value of the own price elasticity of demand at this price.

FACT: Sonic @ Co. produces sonic boom chocolates, demand for which is: D(p) = 50(p+2) 2), %3! [1] Write down the equation of the total revenue function for this firm in terms of price. [2] Derive the own price elasticity of demand. [3] Suppose, Sonic @ Co. is planning to charge $8 for each chocolate. Calculate the absolute value of the own price elasticity of demand at this price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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