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- Suppose the makers of PEZ candies have decided to test market a new dispenser with red, white, and blue candies. The PREZ dispenser (as it will be called in 2024) bearing the likeness of each political party's presidential candy-date is estimated to have a market demand given by: 5Q = 3000 - 200p where p is expressed in dollars per dispenser and Q is expressed in thousands of dispensers sold per week. a. If p= $6 per PREZ dispenser, how many PREZ dispensers will be sold that week? Less than a thousand? b. If p = $6 per PREZ dispenser, what will be the price elasticity of demand? PLEZ show your work. c. If the objective is to maximize revenue, how much would you recommend the company charge per PREZ dispenser?Suppose that the makers of PEZ candies have decided to test market a new dispenser with red, white, and blue candies. The PREZ dispenser (as it will be called in 2024) bearing the likeness of the leading presidential candy-dates is estimated to have a market demand given by: 750 Q = 48000 - 6000 p where p is expressed in dollars per dispenser and Q is expressed in thousands of dispensers sold. a. Ifp is equal to 5 dollars per dispenser, how many PREZ dispensers will be demanded at that price? {Hint: Recall that Q is expressed in thousands.} b. Ifp is equal to 5 dollars per dispenser, what will be the price elasticity of demand for PREZ dispensers? PLEZ show your work. c. If the price rises from $5 to $5.50, will total revenue rise or fall? And by how much? Please express your answer in dollars, not thousands of dollars. d. If the objective is to maximize revenue, how much would you recommend the company charge per PREZ dispenser?Using the data in the table below, estimate the demand function for cod. Price, dollars per pound 1.90 1.35 1.25 1.20 0.95 0.85 0.73 Using the Excel trendline option to estimate a linear demand function, the linear demand function is Q = 12.53-6.25p. Suppose the quantity in the first row of the table were 2 instead of 1.5. The linear demand function would now be Suppose the quantity in the second row of the table were 3.2 instead of 2.2. The linear demand function would now be Quantity, thousand pounds per day 1.5 Q= - SNES67 524 5 Q= -p. (Enter your responses rounded to two decimal places.) 2.2 4.4 5.9 6.5 7.0 8.8 p. (Enter your responses rounded to two decimal places.)
- Elasticity of Software The Valve Corporation, a software entertainment company, recently ran a holiday sale on its popu- lar Steam software program. Using data collected from the sale, it is possible to estimate the demand corresponding to various discounts in the price of the software. Assuming that the origi- nal price was $40, the demand for the software can be estimated by the function q = 3,751,000p-2.826 where p is the price and q is the demand. Calculate and interpret the elasticity of demand. Source: codinghorror.com.A TV channel has estimated the demand for its service to be given by the following function: Q=9.83p-1.2A2.5Y1.6P0-1.4 where Q = monthly sales in units P = price of the service in $ A = promotional expenditure in $’000 Y = average income of the market in $’000 P0 = price of ‘home movies’ in $ The current price of the TV channel is $60, promotional expenditure is $120,000, average income is $28,000, and the price of ‘homemovies’ is $45. Indicate whether the following statements are true or false, giving your reasons and making the necessary corrections e. ‘Home movies’ are a substitute for the TV channel.f. A 5 per cent increase in income will increase demand by 16 per cent.g. A 10 per cent increase in price will reduce demand by 12 per cent.h. Current sales are over a million units a month. i. The demand curve for the channel is given by:Q=9.83p-1.2j. The channel’s sales are more affected by the price of ‘home movies’ than by the price of its own service.k. If the channel increases its…DLSU is a large private university, that is known for its strong athletics program, especially in basketball. At the request of the dean of the College of Business Administration, a professor from the economics department estimated a demand equation for student enrollment at the university. Qd = 4,000 – 0.4Px + 0.1I + 0.25Py where Qd is the number of full-time students, Px is the tuition charged per full-time student per semester, I is real gross domestic product (GDP) (PhP billions) and Py is the tuition charged per full-time student per semester by ADMU University, DLSU’s closest competitor. Suppose that full-time enrollment at DLSU is 3,000 students. If I = P7,500 and Py = P6,000, how much tuition is DLSU charging its full-time students per semester? Determine if the 2 Universities are substitute or complementary. The administration is considering a P750,000 promotional campaign to bolster admissions and tuition revenues. The economics professor believes that the…
- A movie theater has been charging $ 10.00 per person and selling about500 tickets on Saturday and Sunday nights. After surveyingtheir customers, theater owners estimate that for every 50 cents theylower the price, the number of attendees will increase by 50 per night.Find the demand function and calculate the consumption surplus whentickets are sold for $ 8.00.The demand function for beer is given below, where p is the retail price and D(p) is the demand in gallons per capita. For the demand function, find the elasticity of demand E(p) for any price p. [Note: You will find that demand is inelastic. This means that taxation, which acts like a price increase, is an ineffective way of discouraging liquor consumption, but is an effective way of raising revenue.] D(p) = 6.913p−0.142Harding Enterprises has developed a new product called the “Quest Simulator (QS)”. The market demand for this product is given as follows: Q = 240 - 4P. If QS is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? What is the maximum amount that consumers are willing to pay for the quantity demanded at the price of $40? (hint: it includes both the total expenditures and the consumer surplus) If the price of QS is increased slightly from $40, what will happen to the total expenditure on the product? What will happen to the consumer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Columbia, a South American country, exports coffee and estimates that the demand function to be D(p) = 63 – 2p². a) If the country wants to raise revenues to improve its balance of payments, should it raise or lower the price from the present level of $3 per pound? Hint: You may need to use the formula for the elasticity of demand, E (p) P-D'(p) D(p) b) Find the price in dollars per pound that will maximize the revenue.The coconut oil demand function (Buschena and Perloff, 1991) is Q= 1,200 - 9.5p + 16.2p, + 0.002Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p., is the price of palm oil in cents per pound, and Y is the income of consumers. Assume 50e per pound, p, is 31¢ per pound, and Q is 1,330 thousand metric tons per vear. Calculate the income elasticity of demand for coconut oil. The income elasticity of demand for coconut oil is (Enter a numeric response using a real number rounded to three decimal places.) tv Help Me Solve ATa ck Answ MacBook Air 80 DI DD esc F1 F2 F3 F5 F6 F7 F8 F9 F10 F11 F12 @ $ % & 1 2 3 4 5 6 7 8 9 { Q W E T Y U P tab A H K ..Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. compute also the sales tax in order to answer those ff questions 7. How much is the change in the price for the consumer, when additional sales tax is 0.85 per unit? Use a number, 2 decimal values, no commas, no space, no signs. * 8. How much is the buying price when sales tax is imposed? Use a number, 2 decimal values, no commas, no space, no signs. *