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Instruction: All answers should be numeric (numbers only, without letters, commas, spaces and currency symbols). Answers in items 1 and 2 are whole numbers. Round-off answers (to items 3 and 4) to 2 decimal places. Billy Jeans, Inc. is a manufacturer of quality denims for men. Their demand and supply equations for their low-rise jeans are given below: Qd = 35000 – 14P Qs %3D 5000 + P 1. Solve for P* 2. Solve for Q* 3. Last month, a competitor offered a 20 percent discount off their regular Php1800 price on their low-rise jeans which caused Billy Jeans' sales to decrease by 3000 units (from the Q*, computed in item 2). Calculate the arc cross-price elasticity of demand for Billy Jeans' low-rise denims for men. 4. In order to regain lost sales, Billy Jeans lowered their original price (from P*, computed in item 1) by 10 percent, increasing their sales from 4000 to 6000 units. Calculate the arc price elasticity of demand for Billy Jeans' low-rise denims for men.

Instruction: All answers should be numeric (numbers only, without letters, commas, spaces and currency symbols). Answers in items 1 and 2 are whole numbers. Round-off answers (to items 3 and 4) to 2 decimal places. Billy Jeans, Inc. is a manufacturer of quality denims for men. Their demand and supply equations for their low-rise jeans are given below: Qd = 35000 – 14P Qs %3D 5000 + P 1. Solve for P* 2. Solve for Q* 3. Last month, a competitor offered a 20 percent discount off their regular Php1800 price on their low-rise jeans which caused Billy Jeans' sales to decrease by 3000 units (from the Q*, computed in item 2). Calculate the arc cross-price elasticity of demand for Billy Jeans' low-rise denims for men. 4. In order to regain lost sales, Billy Jeans lowered their original price (from P*, computed in item 1) by 10 percent, increasing their sales from 4000 to 6000 units. Calculate the arc price elasticity of demand for Billy Jeans' low-rise denims for men.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Instruction: All answers should be numeric (numbers only, without letters, commas, spaces and currency symbols). Answers in items 1 and 2 are whole numbers. Round-off answers (to items 3 and 4) to 2 decimal places. Billy Jeans, Inc. is a manufacturer of quality denims for men. Their demand and supply equations for their low-rise jeans are given below: Qd = 35000 – 14P Qs = 5000 + P 1. Solve for P* 2. Solve for Q* 3. Last month, a competitor offered a 20 percent discount off their regular Php1800 price on their low-rise jeans which caused Billy Jeans' sales to decrease by 3000 units (from the Q*, computed in item 2). Calculate the arc cross-price elasticity of demand for Billy Jeans' low-rise denims for men. 4. In order to regain lost sales, Billy Jeans lowered their original price (from P*, computed in item 1) by 10 percent, increasing their sales from 4000 to 6000 units. Calculate the arc price elasticity of demand for Billy Jeans' low-rise denims for men.
Transcribed Image Text:Instruction: All answers should be numeric (numbers only, without letters, commas, spaces and currency symbols). Answers in items 1 and 2 are whole numbers. Round-off answers (to items 3 and 4) to 2 decimal places. Billy Jeans, Inc. is a manufacturer of quality denims for men. Their demand and supply equations for their low-rise jeans are given below: Qd = 35000 – 14P Qs = 5000 + P 1. Solve for P* 2. Solve for Q* 3. Last month, a competitor offered a 20 percent discount off their regular Php1800 price on their low-rise jeans which caused Billy Jeans' sales to decrease by 3000 units (from the Q*, computed in item 2). Calculate the arc cross-price elasticity of demand for Billy Jeans' low-rise denims for men. 4. In order to regain lost sales, Billy Jeans lowered their original price (from P*, computed in item 1) by 10 percent, increasing their sales from 4000 to 6000 units. Calculate the arc price elasticity of demand for Billy Jeans' low-rise denims for men.
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