Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Sony cut the price of its 42 HDTV LED TV from $3000 in the first quarter of 2013 to $2500 in the second quarter. Sales rose from 25,000 to 30,000.

a) Based upon this information, what is your best estimate of price elasticity of demand?

b) How valid is this process for estimating price elasticity of demand? When will it give reasonable approximates and when will it give misleading ones?

c) Panasonic decided to hold the price of its 42” LED TV at $3000. Their sales fell from 15,000 to 12,500. What is your best estimate of cross-price elasticity of the demand for Panasonic plasma sets?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914096

Have any Question? 


Related Questions in Macroeconomics

Discuss and contrast how your state and metropolitanlocal

Discuss and contrast how your State and Metropolitan/Local Area GDP rates and personal income compared to the Rest of the U.S. by briefly summarizing the information within these categories. Such as, identifying the cont ...

Assume that the consumption schedule for a private open

Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant ...

A describe five 5 ecosystem goods and services of the

a.) Describe five (5) ecosystem goods and services of the Neponset River Watershed. b.) Assign dollar ($) values to these 5 ecosystem goods and services of the Neponset River Watershed. Please be clear about how you asse ...

Banks play role in changing monetary supplya assume the

Banks play role in changing monetary supply a) Assume the bank received a cash deposit of $20,000 What is the immediate impact of this transaction on the money supply. and or its composition explain. b) Suppose that the ...

Well your report received a luke-warm reception the ceo of

Well, your report received a luke-warm reception. The CEO of Stoll's Pasty Farms expressed concern about several things. Uncle Tolvo's pasty crop was unique as his plants and soil structure were "one of a kind" and no on ...

A corporation produces output with a constant market price

A corporation produces output with a constant market price of $70 per unit. The marginal product of capital is 1/(2K), where K is units of capital, with each unit assumed to be worth $1. The life span of the capital is 1 ...

Question 1the following shows the demands and marginal

Question 1 The following shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost MC: Compare the demand conditions in each ...

Discuss a scenario in which the use of leading indicators

Discuss a scenario in which the use of leading indicators for your industry or firm (or an industry or firm of your choosing, could be fictitious or general) might improve performance and promote better decision making. ...

1 1.

1. Describe three factors that help to influence our nation's focus on natural or man-made disasters. 2. Define Mitigation and Preparedness. Compare and contrast the ideas of each, and give examples to highlight your sta ...

Assume an economy that is operating above full

Assume an economy that is operating above full employment. Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following: The long-run aggregate supply curve Current price level and ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen