solution plz The Pear company sells a smart phone for $250. Its sales have averaged 8,000 units permonth over the last year. Recently, its closest competitor Banana company reduced the priceof its smart phone from $350 to $300. As a result, Pear's sales declined by 1,500 units permonth.(a) What is the cross price elasticity of demand between the Pear and Banana smart phone?Use the averaging formula. What does this indicate about the relationship between the twoproducts?(b) If the Pear company knows that the price elasticity of demand for its phone is -1.5, whatprice would the Pear company have to charge to sell the same number of units as it did beforethe Banana company price cut? Assume that Banana company holds its price of its phoneconstant at $300. Use the averaging formula.

The Pear company sells a smart phone for $250. Its sales have averaged 8,000 units per month over the last year. Recently, its closest competitor Banana company reduced the price of its smart phone from $350 to $300. As a result, Pear's sales declined by 1,500 units per month.

The Pear company sells a smart phone for $250. Its sales have averaged 8,000 units per month over the last year. Recently, its closest competitor Banana company reduced the price of its smart phone from $350 to $300. As a result, Pear's sales declined by 1,500 units per month.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

ect 19 6 Coffee Tuition Pizza Item Streaming TV Vacation (9) Quantity 20 pounds 1 year 150 pizzas 12 months 1 week Inflation Weighting Problem Unit Price $7 4,000 10 30 350 Total Budget Expenditure (Q X P) Item Weight
typing clear no chatgpt used i will give 5 upvotes i need both answers
Why is it -1000 at NVP (Beta), not -10000
PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
p (a) MC ATC MR P* (b) MC ATC MR (c) MC ATC MR
Affordability R109 per week. Proteas (R15) Roses (R8) Lavender (R6) No. MU TU WMU MU TU WMU MU TU WMU 1 40 40 32 32 20 20 2 35 75 26 58 18 3 30 105 24 82 15 4 23 128 (b) 101 12 5 18 146 16 117 9 6 15 161 10 127 6 (c) 7 0 (a) 8 135 0 8 -6 155 (d) 135 -4 9 -15 140 (e) 131 -7 Calculate the average utility of 4 protea flowers. Round off to zero decimal places. Do not forget the word "utils". Blank 1 Blank 1 Add your answer
11
If the details of the quantity to be produced for a period are as follows, how many units are produced? The opening inventory is 160 units; units sold are estimated to be 200 units; the desired closing stock is 100 units. a. 200 units b. 260 units c. 460 units d. 140 units
The graph shown below is that of Do Drop In, a shop in the dry-cleaning industry. Cost and revenues (in dollars) 20 18 16 14 12 10 60 MR 120 180 240 MC D Quantity per period AC 300 360 420
In this problem annual income for ages 20 to 80 is given graphically. People sometimes spend less than their income (to save for retirement) or more than their income (taking out a loan). The process of spreading out spending over a lifetime is called consumption smoothing. annual income ($10nns nar vaar) years) (a) Find the average annual income for these years. The average annual income is dollars/year. eTextbook and Media (b) Assuming that people spend at a constant rate equal to their average income, when are they spending less than they earn, and when are they spending more? Enter your answers in increasing order. They spend less than their income every year from age to They spend more than their income every year from age to and from age to
What is the markup price for the Acme1 battery? HINT: Calculate markup price as Unit Cost/ (1-Markup%) $30 $35.20 $42.50 $34