Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with your answers. Degree of Elasticity Relatively elastic (E> 1) Airline travel, long run Unitary elastic (E = 1) Shoes Relatively inelastic (E< 1) Coffee Airline Travel: total revenue will slightly decrease Shoes: total revenue will decrease Coffee: total revenue will decrease Estimate v 2.4 0.9 0.3 Decrease in Quantity Demanded Increase in Price (%) (%, do not include a negative sign) Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total revenue in each market? 20% 20% 20% 21.6% 90.0% 81.0%
Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with your answers. Degree of Elasticity Relatively elastic (E> 1) Airline travel, long run Unitary elastic (E = 1) Shoes Relatively inelastic (E< 1) Coffee Airline Travel: total revenue will slightly decrease Shoes: total revenue will decrease Coffee: total revenue will decrease Estimate v 2.4 0.9 0.3 Decrease in Quantity Demanded Increase in Price (%) (%, do not include a negative sign) Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total revenue in each market? 20% 20% 20% 21.6% 90.0% 81.0%
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 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
Related questions
Question
![Given the table of elasticity estimates and price increases, calculate the percentage decrease in unit sales and then predict if total
revenue should increase or decrease based on your calculations.
Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with
your answers.
Degree of Elasticity
Relatively elastic (E > 1) Airline travel, long run
Unitary elastic (E = 1) Shoes
Relatively inelastic (E< 1) Coffee
v
Estimate
V
2.4
0.9
0.3
Decrease in Quantity Demanded
Increase in Price (%) (%, do not include a negative sign)
20%
20%
20%
Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total
revenue in each market?
Airline Travel: total revenue will slightly decrease ✓
Shoes: total revenue will decrease
Coffee: total revenue will decrease
21.6%
90.0%
81.0%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1ea9eb6-0993-427a-9302-5172c2820960%2Fa70f3ea7-4b68-4eea-b0aa-b2a9dc24ab9f%2F3y49azc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given the table of elasticity estimates and price increases, calculate the percentage decrease in unit sales and then predict if total
revenue should increase or decrease based on your calculations.
Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with
your answers.
Degree of Elasticity
Relatively elastic (E > 1) Airline travel, long run
Unitary elastic (E = 1) Shoes
Relatively inelastic (E< 1) Coffee
v
Estimate
V
2.4
0.9
0.3
Decrease in Quantity Demanded
Increase in Price (%) (%, do not include a negative sign)
20%
20%
20%
Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total
revenue in each market?
Airline Travel: total revenue will slightly decrease ✓
Shoes: total revenue will decrease
Coffee: total revenue will decrease
21.6%
90.0%
81.0%
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