Please see below. Need help with this. Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer thequestions.Round answers to two places after the decimal where applicable.Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 3.60.Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67%.Abe must haveprices.Abe's prices must have changed byincreaseddecreasedTherefore, Abe's total revenueAt Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 25%.If Webs-R-Us has a price elasticity of demand at 0.30, we can expected the number of websites designed toincrease.decrease.Therefore, WVebs-R-Us's total revenue willThe number of websites will change byof

Answered: nons. d answers to two places after the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please see below. Need help with this.

Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the
questions.
Round answers to two places after the decimal where applicable.
Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 3.60.
Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67%.
Abe must have
prices.
Abe's prices must have changed by
increased
decreased
Therefore, Abe's total revenue
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 25
%.
If Webs-R-Us has a price elasticity of demand at 0.30, we can expected the number of websites designed to
increase.
decrease.
Therefore, WVebs-R-Us's total revenue will
The number of websites will change by
of

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