Homework Help: Managerial ECON

Posted by Monica on Tuesday, May 15, 2007 at 1:27pm.

A researcher estimated the Ep for autos in the U.S. is –1.2, while the Ei is 3.0. Next year, U.S. automakers intend to increase the average price of autos by 5%, and they expect consumers’ disposable income to rise by 3%.
A) If sales of domestically produced autos are 8 million this year, how many autos do you expect U.S. automakers to sell next year?
B)Byy how much should domestic automakers increase the price of autos if they wish to increase sales by 5%?

Take a shot. what do you think

No one has answered this question yet.

Answer this Question

Related Questions

Managerial Economics - Please help with this question: A researched estimated ...
Managerial Economics - I need assistance with the following question: A ...
Managerial econ 1 - 1)The Midnight hour, a local nightclub, earned $100,000 in ...
Managerial Finance - The real risk-free rate is 2.1%. Inflation is expected to ...
Managerial Economics Question - 1)The Midnight hour, a local nightclub, earned $...
econ - If the Consumer Price Index was 110 in one year and 117 in the next year...
econ - If the Consumer Price Index was 110 in one year and 117 in the next year...
English - 1. I will be 14 years old next year. 2. I shall be 14 years old next ...
Managerial Accounting - How does lowering your estimated direct labor hours ...
finance - An investor estimates that next year’s sales for New World ...

For Further Reading

First Name:
School Subject:
Answer: