Ask Question, Ask an Expert


Ask Macroeconomics Expert


The Stopdecay Company sells the electric toothbrush for $25. Its sales have aver-aged 8,000 units per month over precedent year. Freshly, its closest competitor, Decayfighter, decreased the price of its electric toothbrush from $35 to $30. Consequently, Stopdecay’s sales are declined by 1,500 units per month.


a. What is the arc cross elasticity of the demand between Stopdecay’s toothbrush and Decayfighter’s toothbrush? What does this indicate about the relation-ship between the two products?

b. If Stopdecay knows that arc price elasticity of demand for its toothbrush is −1.5, what price would Stopdecay have to charge to sell the similar number of units as it did before the Decayfighter price cut? Suppose that Decayfighter holds the price of its toothbrush steady at $30.

c. What is Stopdecay’s average monthly total revenue from sale of electric toothbrushes before and after price change determined in part (b)?

d. Is the result in part (c) essentially desirable? What other factors would have to be taken in consideration?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914043

Have any Question? 

Related Questions in Macroeconomics

Answer this 2 questions1 explain domars theory of slavery

Answer this 2 questions 1. Explain Domar's theory of slavery and serfdom as it relates to population and land endowments. 2. Compare and contrast the manorial system in Western Europe with Russian Serfdom. Thr each quest ...

Read the article titled - mankiw the macroeconomist as

Read the article titled - Mankiw, "The Macroeconomist as Scientist and Engineer" ( you can find it online). Please provide a couple paragraph on your thoughts regarding this article and whether you agree or disagree with ...

P 16 - 05qdp 2 02 qsif a tax of 2 per kg is imposed on

P = 16 - 0.5QD P = 2 + 0.2 QS If a tax of $2 per kg is imposed on the producers state the new demand curve equation and the new equilibrium

Explain why in case of a price rise consumers would shift

Explain why in case of a price rise consumers would shift to a substitute whose price is lower.

Question 1 what are the purpose of change

Question 1: What are the purpose of change management? Question 2: What is a relationship between changeq Incidentq Service Request q Release Question 3: What are the Fiverisk indicators of poor change management ? Quest ...

Find a short article about the economy of a countrynot usa

Find a short article about the economy of a country(not USA). maybe european country. and write a page paper based on your our living reality. you must need to write this paper connect with reality issues.and you have to ...

The conditions in a fish tank are being controlled using

The conditions in a fish tank are being controlled using sensors and a microprocessor. To keepthe fish healthy, the temperature must be at 25°C and the oxygen content needs to be 20 ppm(parts per million). The tank conta ...

Theory of consumer choice and frontiers of

Theory of Consumer Choice and Frontiers of Microeconomics You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis tha ...

1 briefly compare and contrast the mechanisms of planning

1. Briefly compare and contrast the mechanisms of planning and control used in a Waterfall development project and those used in iterative development projects. 2. There are several different versions of Agile developmen ...

In a table environment compare and contrast fhss dsss and

In a table environment, compare and contrast FHSS, DSSS, and OFDM (although ODFM is not a spread-spectrum technology, it does have similar comparitive properties). How do coding and modulation work with spread-spectrum a ...

  • 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