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.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2.5CE

See similar textbooks

Similar questions

Each time a song is played on the radio, the record company and the songwriter are paid a royalty of $0.30.Of the total, 75% goes to the company and the rest to the writer. If on a network of 50 radio stations, a certainsong is played 4 times a day during the first week and then 20 times a day for the next three weeks, how muchdoes the network owe in royalties for the four weeks? How much do the record company and the songwriterreceive each
An entrepreneur named Khadijah has total revenue shown by the equation TR = 150Q - 5Q² and total costs shown by the equation TC = 20 - 10Q. Determine the amount of output that must be produced by Khadijah to get the maximum profit and what is the maximum profit from that amount of output. Prove that the value obtained is the maximum!
Cost, Revenue & ProfitFor these problems, xx will represent the number of items and yy will represent the money.The fixed costs for a certain item are $215 per week. The cost to produce each item is $2 per item.Using this information, what is the cost equation? Give your answer in slope-intercept form:y=y= The retailer intends to sell each item for $13/item.Using this information, what is the revenue equation? Give your answer in slope-intercept form:y=y= If in this week 13 items are made, and all items are sold in the week, what are the total costs to the retailer?Cost = $What is the revenue from selling 13 items?Revenue = $Finally, what is the profit for this retailer?Profit = $Box 1 & 2: Enter your answer as an expression. Example: 3x^2+1, x/5, (a+b)/cBe sure your variables match those in the question.
A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.
Philippine Population 110M Urban Population 51.2% of PH Multi-unit Residential Population11.9% of Urban Population If usage is 2 bottles per day and each bottle is Php12.00… What is the market size (value) per quarter for bottled water for the urban population? What is the market size (units) per quarter for those living in multi-unit residential areas?
WHERE IS THE CHART COMING FROMIAM CONFUSED? FC=1200? PLEASE EXPLAIN CHART USED AC=FC/Q+VC (600x3.1) - (500x3.5) 110 = 11 600-500 100 3.10= UC/600+11 3.50=UC/500+1.10 FC=1200 EURO FC=1200 EURO AC=UC/Q+VC UC=UNIT COST
Please help me with the incorrect answers. Thabks! :)
A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?
show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
whats the points for 1) 2) 3)
Dataware is trying to determine whether to give a $10 rebate, cut the price $6, or have no price change on a software product. Currently, 40,000 units of the product are sold each week for $45 apiece. The variable cost ofthe product is $5. The most likely case appears to bethat a $10 rebate will increase sales 30%, and half of all people will claim the rebate. For the price cut, the most likely case is that sales will increase 20%.a. Given all other assumptions, what increase in sales from the rebate would make the rebate and price cut equally desirable?b. Dataware does not really know the increase in sales that will result from a rebate or price cut. However, the company is sure that the rebate will increase sales by between 15% and 40% and that the pricecut will increase sales by between 10% and 30%.Perform a sensitivity analysis that could be used to help determine Dataware’s best decision.
One contributor to the rational demand forcommitment devices is the time-inconsistencyproblem. Explain how limited processing capacitymight also contribute to the demand.