A company wants to issue a coupon for a product. The marginal cost of the product is $1. If the elasticity of demand for coupon users is -5 and the elasticity of demand for non-coupon users is -2, then in order to maximize profit, what should the value of the coupon (in dollars) be?
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- QUESTION 6 28 24 20 16 12 8 4 8FO O O O O D1 D2 04 8 12 16 20 24 Q 06. If demand for this product changed from D1 to D2 as a result of a change in consumer income from $35,000 to $45,000, the "income elasticity of demand" is and this is a/an product. P 0 ררררררררררררררו d) a) negative, normal b) negative, inferior. positive, normal positive, inferior S e) positive, complementaryIf the price elasticity of demand for coffee is -0.5 and Starbuck's is expecting a 10% increase in price, then what will be the new quantity demanded if it's currently 100 cups/hour. 95 cups/hour O 105 cups/hour 80 cups/hour O 120 cups/hourThe Lulu Hypermarket sells 0,209 boxes of chicken per month at RO 4 per box. The own price elasticity for chicken is estimated to be O.45 If Lulu Hypernarket decreases the pripc of a box of chicken byS00 Baiza -8 Per (a) How many boxes of chicken will Lulu Hypermarket sell? (b) Lulu Hypermarket's revenue will change by how much? (c) Will the consume: be better off or worse off?
- The demand function for SkanDisc 2GB thumb drives is given by p- 4(x + 3) e"/a where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Compute the price, p, when x 6. Do not round your answer. Price, p- 36e dollars Use implicit differentiation to compute the rate of change of demand with respect to price, p, when x- 6. Do not round your answer. Rate of change of demand, x' x thousands of units per dollar Compute the elasticity of demand when x - 6. Do not round your answer. Elasticity of Demand-if the price elasticity of demand for a product is equal to -0.5, then a 10 percent decrease in price will increase quantity demanded by Multiple Choice O O O O 20%. 0.5%. 5%. 0.05%.On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. 1280 1200 Total Revenue 1120 - 1040 980 880 800 720 640 560 o15 30 45 60 75 90 105 120 135 150 165 180 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and B is approximately ▼ Suppose the price of bikes is currently $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)
- The price elasticity of gasoline supply in the U.S. is 0.6. If the price of gasoline rises by 10%, what is the expected change in the quantity of gasoline supplied in the U.S.? O a 2.0% O b. -3.5% OC. 6.0% O d. 3.5% e. 6.0%For the demand equation, express the total revenue R as a function of the price p per item. q=-5p+1000 R(p) = Sketch the graph of the resulting function. O No Solution Help 20 90000 80000 70000 60000 50000 40000 30000 20006 10000 20 40 60 50 100 120 140 160 180 200 220 240 260 280 -1/000+4 51 WebAssign. Graphing Tool Determine the price p (in dollars) that maximizes total revenue. p = $ Graph Layers After you add an object to the graph you can use Graph Layers to view and edit its properties.FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
- 4. You have been hired as a consultant to estimate the demand for various brands ofcoffee in the market. You are provided with annual price data for two years by U.S.state and the quantities sold. You want to estimate a demand function for coffeeusing this data. What problems do you think you will encounter if you estimatedthe demand equation by OLS?for a certain product, if the number of units that gives maximum revenue is 300 units, the number of units that gives maximum profit is 250 units and each 1000 units comsumes 5000 dollers of raw materials and a sunk cost of 2000 dollers for the whole number produced. then the selling price equation is O a. p=30 05D O b. p=30 06D Oc. p=50 05D O d. p-42 07D O e. p=30_03DYulia's annual demand for home-delivered coffee beans is given by MWTP(Q) = 500 - 5xQ, where Q is measured in kilograms of beans. In order to use the only delivery service available in Odesa, she must pay an annual membership fee, and then she pays 2400 for each kilogram purchased in that period. What is the largest membership fee Yulia is willing to pay? O 29000 O 28000 O 22000 O 21000 O None of the above.