MANAGERIAL ECONOMICS

posted by .

In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6 would you expect an increase or decrease in total revenue?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Economics/Math

    This is an MBA-level Managerial Economics Course. I'm working on some HW and just want to double-check my answers. 1. Jimbo's is a new company producing exploding cigars. Jimbo's company has the following demand curve for the cigars: …
  2. Managerial Economics

    This is some HW for a Managerial Econ class. I've got what I think are the answers, and I'd just like someone to read over my reasoning & check my answers. Any assistance is appreciated. Thanks! 2.) A recent study of the Madison, Wisconsin …
  3. economics

    I know this might be basic.....but I am still not sure about subject of elasticity?
  4. Economics

    The Own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good …
  5. Managerial Economics

    Please help with this question: A researched estimated that the price elasticity of demand for automobiles in the U.S. is -1.2, while the income elasticity if demand is 3.0. Next year, U.S. auto makes intend to increase the avg price …
  6. Advanced Microeconomics College Level

    Information on the price elasticity of demand is particularly importatn to managerial decision making because: A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B) …
  7. Economics

    If Starbucks raises its price by 7 percent and McDonald’s experiences a 0.3 percent increase in demand for its coffee, what is the cross-price elasticity of demand?
  8. Benue State University Makurdi

    In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6 would …
  9. Economics

    1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?
  10. Economics 201

    Determine the price elasticity of demand for a microwave that experienced a 20% drop in price and a 50% increase in weekly demand quantity. I know I have to use the price elasticity of demand formula, but I keep getting the wrong answer. …

More Similar Questions