The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how manyGucci bags will be sold per week? Use the midpoint formula.Suppose the current price of silver is $5 per pound and the quantity supplied is 200 pounds per day. If the price of silver falls to $4.5 per pound, the quantity supplieddrops to 180 pounds per day. Use the midpoint formula to calculate the price elasticity of supply for silver.According to an article, even elite resorts don't have advanced systems that can react quickly to demand changes, unlike airlines. Even if they could, many hotelierssay people don't respond that much to lower rates. "We've experimented this, cutting our prices by $50 [per night], and we didn't see a significant response inoccupancy," says Dan Collins, a vice president for JDS Hospitality.Based on the information above, the demand for resort rooms is.inelasticinelasticunit elasticelastic CostsMC(per pound)ATCAVC3.002.251.50150 180 225Quantity(pounds)The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the followingquestions. Assume the market price is $3 per pound.a. What is the lowest price at which the apple producer will supply output in the short run? $per pound.b. What is the firm's profit-maximizing (loss-minimizing) output?c. Is the firm earning a profit or a loss?lossprofit

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The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how many Gucci bags will be sold per week? Use the midpoint formula.

The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how many Gucci bags will be sold per week? Use the midpoint formula.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how many
Gucci bags will be sold per week? Use the midpoint formula.
Suppose the current price of silver is $5 per pound and the quantity supplied is 200 pounds per day. If the price of silver falls to $4.5 per pound, the quantity supplied
drops to 180 pounds per day. Use the midpoint formula to calculate the price elasticity of supply for silver.
According to an article, even elite resorts don't have advanced systems that can react quickly to demand changes, unlike airlines. Even if they could, many hoteliers
say people don't respond that much to lower rates. "We've experimented this, cutting our prices by $50 [per night], and we didn't see a significant response in
occupancy," says Dan Collins, a vice president for JDS Hospitality.
Based on the information above, the demand for resort rooms is.
inelastic
inelastic
unit elastic
elastic

Costs
MC
(per pound)
ATC
AVC
3.00
2.25
1.50
150 180 225
Quantity
(pounds)
The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following
questions. Assume the market price is $3 per pound.
a. What is the lowest price at which the apple producer will supply output in the short run? $
per pound.
b. What is the firm's profit-maximizing (loss-minimizing) output?
c. Is the firm earning a profit or a loss?
loss
profit

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