Q1: KSU Products has just carried out a surveyof the demand fortheir guidebooks to spoken Arabic. They havefound thefollowing results over the last six months.Sales revenue 356 398 372 360 365 350Price ($) 4.5 4.0 4.2 4.5 4.3 4.8a. Estimate an appropriate demandrelationship; Q=apbb. Make a forecast of sales revenue for a priceof $5, statingany assumptions.c. Éstimate the price elasticity of demand forthe data as a whole.d. If price is raised 10 per cent in generalterms, what willhappen to revenue?

Solution: a) In the given data, We'll use the Y variable for Price because it's a dependent…

Answered: Q1: KSU Products has just carried out a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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John, a restaurant consulting firm estimates that in Accra a 10% reduction in the price of roasted groundnut will increase kelewele demand by 20%. The restaurant further estimates that a 10% reduction in price of roasted plantain will decrease kelewele by 15%. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted groundnut. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted plantain.
Worldwide quarterly sales of a brand of cell phones were approximately q = −p + 156 million phones when the wholesale price was $p. (a) If the cellphone company was prepared to supply q = 4p − 384 million phones per quarter at a wholesale price of $p, what would have been the equilibrium price? $ (b) The actual wholesale price was $103 in the fourth quarter of 2004. Estimate the projected shortage or surplus at that price. There is an estimated ______ of million phones.
Hello- How can estimate the demand for the second year of operations based on the following information? Thank you. Val Sam is developing a business plan for starting Pizza business in Waltham. Sam specializes in pepperoni pizza. Based on the secondary data he has found out that there are 20,000 families in the area and about 20% of these families are strict vegetarians. He believes that he can get 10% of the market share of the potential customers. His research reveals an average family consumes 10 pizzas per year. Dough costs $5 per pizza and annual lease for the plant is $16000 . Sam is planning to introduce his Pepperoni pizza at $8 and raise the price by $2 in the second year. Price elasticity of demand for pizza is 0.50
Hello please answer by the letter answer only thank you! Shouldn’t take more than 5 minutes;) i will rate well thanks!! Regarding the price elasticity of the offer: A) It is higher for manufactured goods than for antiques. b) The higher it is, the better companies can adapt to market fluctuations. C) The higher it is, the easier it is for new companies to establish themselves in the market In question. d) It tends to be higher when the period under study is long. If prices and amount of balance decrease, it is because of: A) a decrease in supply and maintenance of demand. b) a decrease in demand and an increase in supply. C) an increase in demand and a decrease in supply. d) a decrease in demand and the maintenance of supply Which of the following statements is a possible reaction to the rise in the price of lemon? * a) Consumers are encouraged to buy more lemons • b) No reaction, since prices in a market system are decided by planners •C) Consumers are encouraged…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E. E=______ (b) in one of the years the actual selling price was $355 per phone. What was the corresponding price elasticity of demand? E=______ The demand is going (up/down) by about _____% per 1% increase in that price level.
The demand for a commodity generally decreases as the price is raised. Suppose that the demand for oil (per capita per year) is D(p)=1000//p barreis, where p is the price per barrel in dollars. Find the demand when p=55. Estimate the decrease in demand if p rises to 56 and the increase in demand if p is decreased to 54. The demand D(55)= The decrease in demand =? barrels. The increase in demand =? barrels.
Compute to three decimal places. (See attached) Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W
(3 points) When sold for $259,000.00, Ferraris have an annual supply of 6758 vehicles and an annual demand of 6691 vehicles. When their price increases to $279,000.00, the annual supply increases to 6913, and the demand decreases to 6010 billion gallons. (a) Assuming that the supply and demand equations are linear, Afind the supply and demand equations. Supply Equation p = Demand Equationp (Note: The equations should be in the form p = mg + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = (Note: The equilibrium price and quantity should be accurate to two decimal places, and the equilibrium price should include a dollar sign).

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