Question: A retail store faces a demand equation for Roller Blades given by: Q = 180 - 1.5P, where Q is the number of pairs sold

A retail store faces a demand equation for Roller Blades given by:
Q = 180 - 1.5P,
where Q is the number of pairs sold per month and P is the price per pair in dollars.
a. The store currently charges P = $80 per pair. At this price, determine the number of pairs sold.
b. If management were to raise the price to $100, what would be the impact on pairs sold? On the store’s revenue from Roller Blades?
c. Compute the point elasticity of demand first at P = $80, then at P = $100. At which price is demand more price sensitive?

Step by Step Solution

★★★★★

3.38 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Putting P 80 in demand equation Q 180 15P Q 180 1580 60 Blades ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

235-B-E-M-E (1184).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

If fixed costs increase, what would be the impact on the (a) Contribution margin ? (b) Income from operations?

If fixed costs increase, what would be the impact on the (a) Contribution margin ? (b) Income from operations? Discuss.

What would be the impact on GNMA pricing if the pass through was not fully amortized? What is the present value of a $10 million pool of 15-year mortgages with an 8.5 percent per year monthly...

A firm's total profit is given by 20x - x + 16y-2y. a. What values of x and y will maximize the firm's profit? b. Repeat part a assuming the firm faces the constraint x + y 8. c. Repeat part a...

A retail store faces a demand equation for Roller Blades given by: Q = 180 - 1.5P, where Q is the number of pairs sold per month and P is the price per paid in dollars. a. The store currently charges...

The Statement of Financial Position for Octagon Limited and Superior Sales Limited as at 31 December 2019 are shown below: Octagon Limited Superior Sales Limited Non-Current Assets: Property, Plant &...

Hello there, I have another question for you. 2. A retail store faces a demand equation for Roller Blades given by: Q=180 1.5P, were Q is the number of pairs sold per month and P is the price per...

Hi there I need help answering ASSIGNMENT 1 ONLY by Friday afternoon. I have attached the study pack to help answer the question. Thanks! FIN4802 ASSIGNMENTS ASSIGNMENT 01 Due date: 13 May 2016...

Can you please help me solve these 10 Econ questions? I also attached the chapter just in case. Thanks so much!! :) MARKETS AND HOW THEY WORK 177 9.0 CHAPTER 9 LEARNING GOALS After reading this...

IOE 419 Mark S. Daskin Service Operations Management IOE Department Winter, 2017 University of Michigan Problem set 4 DUE: MONDAY - February 20, 2017 Points: 100 points total Problem 1: Babette has...

how much is the non-controlling interest in net assets as of December 31, 2022? On January 1, 2022, P Company purchased 64,000 shares of the 80,000 outstanding shares of S Company at a price of...

The uniform beam has a weight of 5000 lb. Determine the average tension in each of the two cables AB and AC if the beam is given an upward speed of 8 ft/s in 1.5 s starting from rest. Neglect the...

Can you please tell me if I got this answer correct and if I didn't what it actually is? Suppose we have the following information: Debt= $42,780 Debt ratio = 63.92% What is the amount of total...

On acceptance of a bill of exchange by the drawee, he is legally known as (i) acceptor. (ii) acceptor for honour. (iii) drawee in case of need. (iv) none of these.

As newly appointed Energy Czar, your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this...

As the owner of Barney??s Broilers??a fast-food chain??you see an increase in the demand for broiled chicken as consumers become more health conscious and reduce their consumption of beef and fried...

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The companys marketing...

You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. Consider the following information: Asset Investment Beta Stock A $420,000 .75 Stock B $280,000 1.30...

bond. QUESTION 36 The right of the bond issuer to repurchase the bond at a predetermined price prior to maturity is referred to as a O a liquidity provision b. taxability e callable O d. conversion...

is Tha weyetis of the component bources of captal are es followes $0.0023 matabors is Tha weyetis of the component bources of captal are es followes $0.0023 matabors