In response to customer complaints about rising prices of food items, a supermarket responds by making the following offer: For every $10 of purchase, the customers will earn $1 worth of coupons and this way they will end up making twice as much as the supermarket. If the supermarket makes $500 worth of total sales to all customers taken together, how much will it need to restrict its costs to so as to honour the offer?

In response to customer complaints about rising prices of food items, a supermarket responds by making the following offer: For every $10 of purchase, the customers will earn $1 worth of coupons and this way they will end up making twice as much as the supermarket. If the supermarket makes $500 worth of total sales to all customers taken together, how much will it need to restrict its costs to so as to honour the offer?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 4SQ

See similar textbooks

Similar questions

Leopard golf clubs usually sell for $1300. At this price, the retailer can sell on average 20 sets per week. For every $50 reduction in price, sales of the golf increase by two sets per week. Similarly, for every $50 increase in price, sales decrease by two sets per week. Determine the optimum price to maximize revenue.
The demand function for a product is p= 45 5-9/10) where q is the number of units and p is the price of one unit. At what price will the demand be 5 units? How many units will be demanded if the price is $12.42?
In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If someone buys a season pass, he can ski as many days as he wishes. The table below provides information on the prices and the number of passes sold in 2018 and 2019. Number of Passes Number of Passes Type of Pass Price in 2018 Price in 2019 Sold in 2018 Sold in 2019 One day $60 5,000 $80 4,200 Season $1,200 250 $1,400 225 Given the information in the table, we know that the revenue earned from selling day passes changed by $ ,and the revenue earned from selling season passes changed by $
Many restaurants think that Buffets can give more revenue compared to normal food servings.
The demand function for a certain model of Blu-ray player is given by p = 600 0.5x + 2 where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $200/unit? (Round your answer to the nearest dollar.)
is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in 2) 2) time. A) Bundled B) Equilibrium C) Maximum retail D) Discount E) Competitive
If another phone service provider enters the market and forces Connecting U to drop the price of a gigabyte down even further than $16- let's say they drop it by an additional 22.2%- what will probably happen to your quantity demanded of data? a) my quantity demanded will increase, but by less than 40% b) my quantity demanded will increase by more than 40% c) my quantity demanded will decrease by more than 40% Note- Connecting U first dropped their price from $20 to $16 causing the price for a gigabyte of data to drop by 22.2% and a 40% increase in quantity demanded.
If you are selling Mercedes-Benz cars in your showroom, what product "substitutes" are available to your prospective customers?
The demand curve for a product is p = 60 - 0.0005q; where p is the price per unit, and q is the number of units demanded. How many units must be sold to achieve sales of $1,200,000?
If club members charge $9 admission to a classic car show, 1,000 people will attend, and for each $1 increase in price, 100 fewer people will attend. Let x represent the amount of increase in price (in dollars). Find R(x), the total revenue function (in dollars). R(x) = Find R'(x). R'(x) = What price will give the maximum revenue for the show? $ per ticket Find the maximum revenue. $
Please see attachment and type out the correct answer ASAP with proper explanation of it within 40 50 minutes. Will give you thumbs up only for the correct answer.
Imagine the demand function for your firm’s product is q = 1500 – 4P. How much is the Total revenue when q=100?