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Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
Edition 7ISBN: 978-0133020267Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
Edition 7ISBN: 978-0133020267 Exercise 3
ABC Sports, a store that sells various types of sports clothing and other sports items, is planning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant has estimated the demand curve to be
Q = 2,000 - 100 P
where Q is cap sales and P is price.
a. How many caps could ABC sell at $6 each
b. How much would the price have to be to sell 1,800 caps
c. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free
d. At what price would no caps be sold
e. Calculate the point price elasticity of demand at a price of $6.
Q = 2,000 - 100 P
where Q is cap sales and P is price.
a. How many caps could ABC sell at $6 each
b. How much would the price have to be to sell 1,800 caps
c. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free
d. At what price would no caps be sold
e. Calculate the point price elasticity of demand at a price of $6.
Explanation
Verified
Verified
a)
The market demand function for a part...
Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
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