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chubhunter [2.5K]
4 years ago
13

An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equ

ates marginal revenue with marginal cost at the initial elasticity of –2. What should the promotional price be when the elasticity changes to –3? (Hint: In other words, what price will equate marginal revenue and marginal cost?)
Business
1 answer:
Vika [28.1K]4 years ago
8 0

Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

2MC = 34

MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

3P -51 = P

2P = 51

P = 51/2

P = 25.5

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A: "Past information can get in the way of learning new things."

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Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20
satela [25.4K]

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net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

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Fernando's favorable attitude toward capital punishment began to change when he wasasked to offer arguments opposing it in a cla
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B) cognitive dissonance

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question his attitude change is best explained by cognitive dissonance. This is defined as the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change. Which is exactly what Fernando is experiencing.

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6 0
3 years ago
Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During 2019 s
daser333 [38]

Answer:

  • Income = $10,000
  • Adjusted Gross Income (AGI) Deduction = $0
  • Claim $10,000 as itemized deduction due to expenses

Explanation:

The activity being a hubby does not exempt it from tax so the $10,000 will be included as income for tax purposes and there will be no deduction for this from the AGI.

She can however, claim her expenses as itemized deductions. There is no tax on interest payment so expenses deducted are:

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7 0
3 years ago
Suppose that the supply function for honey is p=​S(q)=0.4q+2.8​, where p is the price in dollars for an 8​-oz container and q is
Ivanshal [37]

Answer:

The demand function is p= (-2.1)*q + 15.3

Explanation:

The supply function for honey is p=​S(q)=0.4*q+2.8​, where p is the price in dollars for an 8​-oz container and q is the quantity in barrels. The equilibrium price is ​$4.80. So, the equilibrium quantity is:

4.80=0.4*q+2.8​

Solving:

4.80 - 2.8=0.4*q

2=0.4*q

2÷0.4= q

5=q

The demand​ function, assuming it is linear, is p=​m*q+b

The equilibrium quantity is 5 barrels and the equilibrium price is ​$4.80; and the demand is 4 barrels when the price is ​$6.90. So:

\left \{ {{4.80=m*5+b} \atop {6.90=m*4+b}} \right.

Isolating the variable "b" from the first equation, you get:

4.80 - m*5= b

Replacing the previous expression in the second equation you get:

6.90=m*4 + 4.80 - m*5

6.90 - 4.80=m*4 - m*5

2.1= (-1)*m

2.1÷(-1)= m

-2.1=m

Replacing the value of "m" in the expression 4.80 - m*5= b you get:

4.80 - (-2.1)*5= b

Solving you get:

15.3= b

So, <u><em>the demand function is p= (-2.1)*q + 15.3</em></u>

3 0
3 years ago
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