You are the manager of a firm that receives revenues of $30,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1.2. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign. $

You are the manager of a firm that receives revenues of $30,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1.2. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign. $

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

how to calulate the fixed overhead spending variance?
R(p) = pN(p).| Bob is currently selling tires for 60 dollars each. His weekly sales are running at 130 tires per week, so N(60) = 130. His marketing department estimates that he will lose 2 sales per week for each 10 dollar increase in unit price, so N'(60) = -0.2. Estimate Bob's increase in weekly revenue for each one dollar increase in tire price. Revenue increase =1 dollars
PLS HELP ASAP ON BOTH
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Ineffective campaign Normal response Extremely effective Additional Sales in Coefficient of variation Units 50 70 130 Probabilities 0.40 0.30 0.30 Compute the coefficient of variation. Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
Define the term, the variation of PW?
2. only
A country’s gini co-efficient was 0.46 last year and is now 0.48. What can we infer from the change? What would it mean if a country had a co-efficient of 0 or 1?
No written by hand solution
(dollars/16) 8= Ps 5 = P₁ 4= P₂ 0.1 = P4 016 а b g U.S. beef market Q3 Q₁ 113 120 125 (dollars/16) (thousand tons) Rises, L+m+n Falls, L Falls, o None of the above is correct 10=P₂ 7=P3 5-Pi 2= P6 k l Im Q4 Q5 74 76 Japan beef market 'S Q6 86 (thousand tons Refer to the above partial equilibrium model of trade (large country case). Assume the world price is $5 when reaching free-trade equilibrium. Moving from a closed situation to free trade, producer surplus in Japan______ by
None