Tuesday
July 29, 2014

Homework Help: Microeconomics

Posted by Monica on Saturday, August 7, 2010 at 8:23am.

A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Use the diagram to answer the questions that follow.

a. Calculate demand elasticity using the midpoint formula between points A and B, between points C and D, and between points E and F.
b. If the store currently charges a price of $50, then increases that price to $60, what happens to total revenue from shoe sales (calculate P Q before and after the price change)? Repeat the exercise for initial prices being decreased to $40 and $20, respectively.
c. Explain why the answers to a. can be used to predict the answers to b.
(Principles of Microeconomics, 9th Edition. Pearson Learning Solutions 9.9).
<vbk:0558508650#outline(9.9)>

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

math - A men's shoe store uses a markup rate of 115% on its most popular brands ...
managerial economics - Exercise 1 The marketing manager has estimated the ...
Microeconomics - I am not sure whether these questions are true or false: 1. ...
Microeconomics - Suppose that the demand functions for price increases and for ...
microeconomics - When deriving an individuals demand curve how do you find the ...
Economics: Market Equilibrium - Question: The market for shoes in 1997. Between ...
calculus - (1 pt) A new software company wants to start selling DVDs with their ...
calculus - (1 pt) A new software company wants to start selling DVDs with their ...
math - A new software company wants to start selling DVDs with their product. ...
math - A new software company wants to start selling DVDs with their product. ...

Search
Members