Hanna Corporation markets a compact microwave oven.In 2010 they sold 23,000 units at $375 each.Per capita disposable income in 2010 was $6,750.Hanna economists have determined that the arc price elasticity for this microwave oven is ?1.2. (a) In 2011 Hanna is planning to lower the price of the microwave oven to $\$ 325$. Forecast sales volume for 2011 assuming that all other things remain equal.
However, in checking with government economists, Hanna finds that per capita disposable income is expected to rise to $\$ 7,000$ in 2011 . In the past the company has observed an arc
(b) income elasticity of $+ 2.5$ for microwave ovens. Forecast 2011 sales given that the price is reduces to $\$ 325$ and that per capita disposable income increases to $\$ 7,000$. Assume that the price and income effects are independent and additive.

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The Answer of Hanna Corporation markets a compact microwave oven.In 2010 they sold 23,000 units at $375 each.Per capita disposable income in 2010 was $6,750.Hanna economists have determined that the arc price elasticity for this microwave oven is ?1.2. (a) In 2011 Hanna is planning to lower the price of the microwave oven to $\$ 325$. Forecast sales volume for 2011 assuming that all other things remain equal.
However, in checking with government economists, Hanna finds that per capita disposable income is expected to rise to $\$ 7,000$ in 2011 . In the past the company has observed an arc
(b) income elasticity of $+ 2.5$ for microwave ovens. Forecast 2011 sales given that the price is reduces to $\$ 325$ and that per capita disposable income increases to $\$ 7,000$. Assume that the price and income effects are independent and additive.

Hanna Corporation Markets a Compact Microwave Oven $325\$ 325$325 Forecast Sales Volume for 2011 Assuming That All Other

Hanna Corporation Markets a Compact Microwave Oven $\$ 325$ Forecast Sales Volume for 2011 Assuming That All Other