1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
chubhunter [2.5K]
3 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]3 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

You might be interested in
Which of the following is the basis for Justice Ginsberg's opinion that Guido and
ira [324]

Answer:2. Which of the following is the basis for Justice Ginsberg's opinion that Guido and Rankin have legitimate grounds for a lawsuit? The district is a public employer, making its size irrelevant. ... The district has already been sued for the same issue by other former employees.

Explanation:

8 0
2 years ago
Give description of a recent (2019-2021)example of how this problem has displayed in Southafrica
Gemiola [76]
South africa’s is a cool place,
7 0
1 year ago
Wagner & Sons, Inc. perform property appraisals for commercial real estate transactions. The following transactions were com
crimeas [40]

Answer:

Date   Account Title                  Debit     Credit

1-Jul    Supplies                           $345

                Accounts Payable                   $345

2-Jul   Utilities expense               $700

                 Cash                                        $700  

3-Jul    Salaries expense             $875

                 Cash                                         $875

8-Jul     Cash                               $4,015

                  Accounts Receivable            $4,015

12-Jul    Accounts Receivable   $11,000

                   Revenue earned                   $11,000

8 0
2 years ago
PLEASE HELP
olasank [31]

The correct answer is A. A publisher prevents its employees from using office computers for personal use.

Explanation

Internal compliance is a set of strategic internal rules and measures focused on employee behavior and ethics. This internal Compliance was obtained with the aim of improving business practices aimed at raising the quality level of results, goals, and objectives. According to the above, the correct answer is "A. publisher prevents its employees from using office computers for personal use." because this is an example of a business rule that pre-empted the misuse of company equipment preventing its employees from using it for purposes other than corporate ones.

8 0
2 years ago
Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at th
Sliva [168]
D.
221,500 why? because thats the answer
3 0
3 years ago
Read 2 more answers
Other questions:
  • The Project Evaluation and Review Technique (PERT) was developed as a means of scheduling and controlling projects with constant
    10·1 answer
  • Whipple Corp. just issued 280,000 bonds with a coupon rate of 6.02 percent paid semiannually that mature in 25 years. The bonds
    9·1 answer
  • Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p
    14·1 answer
  • You purchased a share of SPCC for $100 and expect to receive a dividend of $5 in one year. If you expect the price after the div
    6·1 answer
  • For purposes of allocating joint costs to joint products, the estimated net realizable value at split-off is equal to A. final s
    11·1 answer
  • Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at $400 12 Sale 70 units 23 Pur
    12·1 answer
  • On January​ 1, 2018​,MechanicsCredit Union ​(MCU​)issued 8 %​,20​-yearbonds payable with face value of $ 200 comma 000.These bon
    14·1 answer
  • The May transactions of Bramble Corp. were as follows:
    10·1 answer
  • Comment benefits of Tourism in 2010 based on households, government and business infrastructure
    11·1 answer
  • The process of analyzing the tasks necessary for the production of a product or service is called ______.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!