Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Description of Income Elasticity

During the past year,MP sold 150,000pairs of brake shoes at an average wholesale price of $13per pair. This year, GNP per capita is expected to fall from $21,000 to 19000 as nation enters a steep recession. Without any price change, MP expects current year sales to fall to 100,000.

a. find out the implied arc income elasticity of demand.

b. Given the projected fall in income, sales mgr thinks current volume of 150,000 units can only be maintained with a price cut of $1 per unit. on this basis,find out the implied arc price elasticity of demand.

c. Holding all else equal, would a further increase in price result in higher or lower total revenue?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M926286

Have any Question? 


Related Questions in Business Economics

Joel purchased a security at the start of the year for 900

Joel purchased a security at the start of the year for $900.  Over the course of the year, the security paid $17 in income and the price at the end of the year was $907.  Calculate the capital gains yield. Round to two d ...

1 dumping is illegal in international trade but is

1. Dumping is illegal in international trade, but is practiced by some countries/companies. Describe how a company or country would be accused of committing "dumping". 2. Define and provide examples of tariff, import quo ...

Globalization and technology developments have led to some

Globalization and technology developments have led to some significant changes in the global economy. Discuss the importance of such changes to the United States. What is the impact upon supply chains? Optional: Use your ...

The concept of opportunity cost is an important one in

The concept of opportunity cost is an important one in economics. It is essential to understand the distinction between explicit and implicit costs. For this assignment, consider an event at work that you company is cons ...

Recommended a healthcare reform policy alternative to

Recommended a healthcare reform policy alternative to positively impact insurance coverage and financing the delivery of healthcare in this country. (400 words) Cite appropriate reference.

A faculty member sells gatorade at unc charlotte football

A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 6 less bottles each week. He turns over the operation to a Managerial Economics student for a ...

Java a billing program that adds up the items a user enters

Java a billing program that adds up the items a user enters. A simple loop and nested if statement program that should use a loop and prompt the user for the item number for each item in inventory to add to the bill. (On ...

Following are examples of typical economic decisions made

Following are examples of typical economic decisions made by the managers of a firm. Determine whether each is an example of what, how, or for whom. Should the company make its own spare parts or buy them from an outside ...

Please let us access free resources to try at our institute

Please let us access free resources to try at our institute Jubail Technical Institute (www.jti.edu.sa). If it is approved by higher managment later, we can have deal or an agreement with you for further course of action ...

You have an opportunity to invest in a business venture it

You have an opportunity to invest in a business venture. It requires a $250,000 investment on January 1st. You will receive $70,000 in After-Tax Cash Flows per year on December 31st for 3 years. At the end of 3 years, th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate