What happens to the ratio of incremental sales revenue to incremental marketing effort when thesales response function is an upward-slopingstraight line?
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What happens to the ratio of incremental sales revenue to incremental marketing effort when the
sales response function is an upward-sloping
straight line?
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- Term used to describe demand that can be accuratelycalculated to meet the need of a production schedule,for example.If a company successfully advertises its product, do we expect the price elasticity of demand for this firm’s perceived demand curve to increase, decrease, or remain the same?You are the marketing manager of a farm. How will you transform itsprice elastic products, such as carrots and potatoes, into price inelasticproducts in order to gain more profit margins?
- If Carmen's Coffee Company wants to increase total revenue and the price elasticity of demand is 0.43, the company should A) increase the price of its coffee. B) decrease the price of its coffee. c)keep the price constant since a price increase or decrease will cause total revenue to fall. d)advertise since this is the only option that will increase total revenue. urgent i will 5 upvotes.Practice #6 Francine is a a dental floss tycoon living in Montana. She faces the following demand curve for her product: Price ( in $/unit) Quantity demanded 2.50 1000 2.20 2000 1.90 3000 1.60 4000 1.30 5000 1.00 6000 .70 7000 .40 8000 Francine has been told by her brother, who is currently taking a marketing class, that if she lowers her price by one increment(for example; changing price from .70 to .40, she will capture market share and increase total revenue. All of her advisors within the company have assured Francine that her brother's advice may be correct, BUT the above demand curve will not change. Assume that Francine knows the above demand curve will not change and is also considering her brother's advice. The prices can only change in…At the beginning of the year 2021, three friends, Ebo, Michael and Joseph decided to set up a company that produces a special kind of fruit juice called BB fruit juice in a city called St. Botch. As fresh graduate from the University of Professional Studies, Accra, you were employed as the firm's general manager in charge of the day to day running of the company. In order to make informed decisions about the firm's product, you employed an economist, who estimated the demand curve of the firm's product by using information from 30 supermarket as follows: Q$ = 99.5 – 2.5P, + 1.25P, – 0.21 + 0.15N + 0.04A Where Qg is the quantity demanded of BB fruit juice in bottles, P, is the per pottle price of BB fruit juice, P, is the per pottle price of Blue Sky, I is the per capita income of the people of St. Botch, N is the number of consumers and A is amount of money the company spends on advertising. In addition, the economist also estimated the supply function for the product as: Qi = -78 +…
- Explain the type of pricing strategy that you as a manager of a company would implement for Good X and Good Y with the following price elasticity of demand co efficients. Use diagrams to motivate your answer. a) Good X: 2.3 b) Good Y: 0.6A movie theater has been charging $ 10.00 per person and selling about500 tickets on Saturday and Sunday nights. After surveyingtheir customers, theater owners estimate that for every 50 cents theylower the price, the number of attendees will increase by 50 per night.Find the demand function and calculate the consumption surplus whentickets are sold for $ 8.00.A garden shop determines the demand function D(p) = 4p+1000 during early summer for %3D 40p+26 comato plants where q is the number of plants sold per day when the price is p dollars per plant. a. Find the price elasticity of demand equation. b. Calculate the price elasticity of demand at a price of $3. Is the demand elastic, inelastic, or unit elastic? How do you know? C. Based on the information in part b, should the garden shop increase, decrease, or leave the price the same at $3 if it wants to increase revenue? Explain. d. Calculate the revenue before the price change and after to support your answer to part c.
- A) Derive the demand function B) Analyze thefeatures of function elements of a and b PLEASE ANSWERA fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditures on thecommodity to (a) increase, (b) decrease, (c) remain unchanged, or (d) any of the aboveA firm estimated a demand function for their mugs:Dm = 1.25Y- 0.8Pm + 0.5Dc – 0.1PcWhere D stands for demand, Y is income growth, P is the price, m is mugs, and c is coffee. (a) What is the price and income elasticity of demand estimates for mugs? (b) How do we estimate the cross price elasticity between coffee mugs and coffee? Are they complementary goods or substitute goods?