Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Sales Projections & Elasticity

The Future Flight Corporation manufactures a variety of frisbees selling for $2.98 each. Sales have averaged 10,000 units per month during the last year. Recently Future Flight's closest competitor, Soaring Free Company, cut its prices on similar frisbees from $3.49 to $2.59. Future Flight noticed that its sales declined to 8,000 units per month after the price cut.

(a) What is the arc cross elasticity of demand between Future Flight's and Soaring Free's frisbees?

(b) If Future Flight knows the arc price elasticity of demand for its frisbees is -2.2, what price would they have to charge in order to obtain the same level of sales as before Soaring Free's price cut?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925724

Have any Question? 


Related Questions in Business Economics

In 2014 chesterfield industries had sales of 1200000 the

In 2014, Chesterfield Industries had sales of $1,200,000. The company had operating expenses (including depreciation) of $540,000, depreciation expense of $82,000 and interest expense of $54,000. Cost of goods sold was $ ...

Current annualized yields on 1 year us treasury securities

Current annualized yields on 1 year US treasury securities are only .28%....while current annualized yields on 2year US treasury securities are .69% (note you may assume that both 1 and 2year securities in this example a ...

Consider 2 firms each has mc 0 the 2 firms compete in

Consider 2 firms, each has MC = 0. The 2 firms compete in quantity in the market with inverse demand P = 150-10Q where Q is the economy’s total output. If the two firms each starts at 0 production level and has to decide ...

How to create a business plana you must introduce a new

How to create a business plan? A. You must introduce a new product/service, and/or market. B. This will required you to create new business initiatives and strategies for your company. C. The format of your analysis will ...

Write a program that asks the user for a color a line width

Write a program that asks the user for a color, a line width, a line length and a shape. Assume that the user will specify a that is either a line, a triangle, or a square. Use turtle graphics to draw the shape that the ...

King lear was worried about how his children would treat

King Lear was worried about how his children would treat him in his old age. Much to his regret, he discovered that children do not always deliver what they promise. In addition to love and respect, children are also mot ...

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 ...

Topic the two primary issues in international commerce are

Topic: The two primary issues in international commerce are dumping and tariffs. Dumping is the international form of predatory pricing, prohibited by the WTO. Tariffs are taxes on imported goods, effectively increasing ...

Can someone create a simple a powerpoint presentation at

Can someone create a simple a PowerPoint presentation at least five slides in length identifying five different categories of application software? List a description of each type of software with advantages, disadvantag ...

Since macro-environmental forces apply to almost every

Since macro-environmental forces apply to almost every industry simultaneously, which force do you think is having the most dramatic and overarching effect on the organization in which you currently work? Provide a ratio ...

  • 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