DRQ #5 AGEC pts September 17, 2013

Slides:

Advertisements

Similar presentations

Total Cost, Total Revenue, and Profit Change as You Sell More Shoes.

Advertisements

Chapter Fifteen Market Demand. From Individual to Market Demand Functions Think of an economy containing n consumers, denoted by i = 1, …,n. Consumer.

1 Intermediate Microeconomic Theory Market Demand.

Find equation for Total Revenue Find equation for Marginal Revenue

Managerial Economics-Charles W. Upton Arc Elasticity  “eta”

The Multiple Regression Model Hill et al Chapter 7.

Economics 214 Lecture 15 Differential Calculus. Need for Differential Calculus We have seen the contribution of Comparative statics to our understanding.

Chapter 2 homework Numbers 7, 10, and 13. Managerial Economics & Business Strategy Chapter 3 Quantitative Demand Analysis.

Price Elasticity of Demand. Elasticity  What do you mean by elasticity?  Name me something that has elasticity?

ECONOMICS 211 CLICKER QUESTIONS Chapter 5 –Set #3.

Exponential Demand Functions The following demand function is an exponential demand function:

ELASTICITY 4 CHAPTER. Objectives After studying this chapter, you will be able to  Define, calculate, and explain the factors that influence the price.

Business Technology Mr. Bernstein Greene, pp 36-38: 2.1 Entreprenuers Satisfy Needs and Wants 2.3 What Affects Price? September 13, 2013.

4 ELASTICITY © 2012 Pearson Addison-Wesley In Figure 4.1(a), an increase in supply brings  A large fall in price  A small increase in the quantity.

4 ELASTICITY © 2012 Pearson Addison-Wesley In Figure 4.1(a), an increase in supply brings  A large fall in price  A small increase in the quantity.

ELASTICITY Chapter – 4/2 Hanan What is Elasticity?  Elasticity refers to the degree of responsiveness in demand in relation to changes in price.

The Incidence of Taxation. The incidence of taxation Indirect taxes.

Business and Economic Applications. Summary of Business Terms and Formulas  x is the number of units produced (or sold)  p is the price per unit  R.

Pricing Chapter 19. Pricing Price Price Barter Barter Price equation Price equation.

Champion “Chips” Product Rule Quotient Rule Chain Rule CombosApps

2.3 RATES OF CHANGE Calc 10/1/14. Warm-up 2.3 Rates of Change - Marginals What were the rates in the warm-up problem?

Lecture 2 Elasticity Costs Perfect Competition. Elasticity Elasticity is a measure of how responsive the quantity demanded is to changes in environmental.

1 Demand and Supply Elasticities. 2 Price Elasticity of Demand Price elasticity of demand: the percentage change in the quantity demanded that results.

1 Intermediate Microeconomic Theory Market Demand.

1 Market Demand Molly W. Dahl Georgetown University Econ 101 – Spring 2009.

MICROECONOMICS Chapter 4 Elasticity

1. The Dixie Chicken currently sells 1,500 burger plates per month for $3.50, and the own-price elasticity for this platter has been estimated to be -1.3.

Real Estate Sales July Mobile & Baldwin County Single Family Residential Homes Sold - Trend DecFebAprJunAugOctDecFebAprJunAugOctNovDecJanFebMarAprMayJunJul.

Revenue. Lesson Objectives To understand what revenue is To understand the concepts of average, marginal and total revenue To be able to calculate AR,

CHAPTER 5 Elasticity l.

240,000 20p + a SATMathVideos.Net A) 550 books B) 600 books C) 650 books D) 700 books 1,000 books sold in a month when the price was $10 per book. An equation.

E2 E7 N17 N3 NW5 SE1 SE8 SW12 Sw18 SW1 W10 W4 CR7KT2 PC Universe: Location of Store Postcodes in London.

4 Elasticity After studying this chapter you will be able to  Define, calculate, and explain the factors that influence the price elasticity of demand.

LO: To explain the impact of price change on sales revenue.

4.1 – Graph Quadratic Functions in Standard Form A quadratic function is a function that can be written in standard form y = ax 2 + bx + c where a does.

Rates of Change: Velocity and Marginals

Total Expenditures Econ 9/27.

Chapter 15 Market Demand.

Derivative Rules Derivatives = rates of change = marginal = tangent line slopes Constant Rule: Power Rule: Coefficient Rule: Sum/Difference Rule:

DRQ #6 AGEC pts September 19, 2013

Supply, Demand, and Consumer Choice

Supply, Demand, and Consumer Choice

15 Market Demand.

Measurement and Interpretation of Elasticities

With Burger King, McDonalds and Pizza Hut all struggling in recent years, the most attractive looking franchise opportunity is probably Subway. To do so,

EQ #6 – AGEC 105 (3 pts in total) Capps – October 2, 2013

© EMC Publishing, LLC.

3.10 Business and Economic Applications

DRQ #5 – September 24, 2009 Aquarius Products, Inc, has just completed development of a new line of skin-care products. Preliminary market research indicates.

Price Elasticity Using Coffee Example

Q = 8.5 – 0.05P, where Q is measured in tons.

Elasticity of Demand.

EQ #6 – AGEC 105 – OCTOBER 5, 2011 (1pts) 1. (a) According to this diagram, calculate the income elasticity of demand for pizza between points A and B.

Chapter Fifteen Market Demand.

DRQ #6 AGEC pts September 19, 2013

DRQ #3 September 17, 2009 Suppose that the demand for organic milk is given by Qd = 100 – 20P. (Qd is in terms of millions of gallons and P is in terms.

Unit 2: Supply, Demand, and Consumer Choice

Review What is the law of Demand?

Chapter Fifteen Market Demand.

DRQ #4 AGEC 317 4pts September 12, 2013

Details of the regression analysis are as follows:

Details of the regression analysis are as follows:

DRQ #5 Capps 5 pts September 20, 2011

EQUATION 3.1 – 3.2 Price elasticity of demand(eP)

DRQ #2 AGEC Capps 3 pts September 8, 2011

Q = 8.5 – 0.05P, where Q is measured in tons.

Economics final microeconomics review

DRQ #5 AGEC pts September 17, 2013

1. Why Marketing Research?

Target Costing and Cost Analysis for Pricing Decisions

Presentation transcript:

DRQ #5 AGEC 317 4 pts September 17, 2013 Suppose that Management of Wendy’s has completed a study of monthly demand for its hamburgers in the Houston market. The study revealed that QW = 150 – 600PW + 300PMD + 400PBK, where QW is the number of hamburgers sold at Wendy’s per store per month, PW is the monthly average price of hamburgers at Wendy’s, PMD is the monthly average price of hamburgers at McDonald’s, and PBK is the monthly average price of hamburgers at Burger King. For the typical Wendy’s outlet, PW = $2, PMD = $1.50, and PBK = $2.50. (1pt) (a) Estimate the monthly sales at the typical Wendy’s outlet in the Houston market. (1pt) (b) What is the own-price elasticity for hamburgers at the typical Wendy’s outlet in the Houston market? (1/2pt) (c) To raise revenue, should Wendy’s raise its price? Why or why not? (1pt) (d) What is the cross-price elasticity of demand for Wendy’s hamburgers with respect to Burger King? (1/2pt) (e) If Burger King raised their price by 10 percent, all other factors constant, how would sales be affected at Wendy’s?