7.you are the manager of a feed store in Millican and the supply cost of Purina cattle mineral is increasing.a. You must fill in the following table and answer the following questions. The elasticity of demand is -1.50 (hint: use this to calculate the quantity demanded when the sales price changesB. Fill in table and answer part b.e) You are the manager of a feed store in Millican and the supply cost of Purina cattlemineral is increasingPrice per bag) You must fill in the following table and answer the following questions. Theelasticity of demand is -1.50 (hint: use this to calculate the quantity demanded when the salesprice changes).Supply costper bagQuantitydemandedRevenueTotal supplyCOSToverhead, etc.ProfitOriginalScenario$20$154005800SupplyCostIncreases$20$185800Supply Cost and Sales Cost Increase$22$703$18$605$26$18$285410ts) What should you change the price of cattle mineral to per bag to maximize profit?

A seller experiences the higehst profit when he/she is able to create the highest difference between…

Answered: Fill in table and answer part b. 7 )…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7.you are the manager of a feed store in Millican and the supply cost of Purina cattle mineral is increasing.

a. You must fill in the following table and answer the following questions. The elasticity of demand is -1.50 (hint: use this to calculate the quantity demanded when the sales price changes

Fill in table and answer part b.
e) You are the manager of a feed store in Millican and the supply cost of Purina cattle
mineral is increasing
Price per bag
) You must fill in the following table and answer the following questions. The
elasticity of demand is -1.50 (hint: use this to calculate the quantity demanded when the sales
price changes).
Supply cost
per bag
Quantity
demanded
Revenue
Total supply
COST
overhead, etc.
Profit
Original
Scenario
$20
$15
400
5800
Supply
Cost
Increases
$20
$18
5800
Supply Cost and Sales Cost Increase
$22
$703
$18
$605
$26
$18
$28
5410
ts) What should you change the price of cattle mineral to per bag to maximize profit?

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