1) Two years ago, KindOfBlue jeans were priced at $72 per pair and 121,000 pairs were sold. Last year, the prices was lowered to $68and sales increased to 132,000 pairs. A) Estimate the value of the demand elasticity. B) Based on your estimate of the demand elasticity, how many units would be sold if the price were lowered by an additional dollar? 

2) Las-O-Vision is the sole producer of holographic TVs, 3DTVs. The daily demand for 3DTVs is D(p) = 10200 – 100p. The cost of producing q 3DTVs per day is q2/2 so that MC = q. A) What is Las-O-Vision’s total revenue schedule? B) What is Las-O-Vision’s marginal revenue schedule? C) What is the profit-maximizing number of 3DTVs for Las-O-Vision to produce each day? D) What price does Las-O-Vision charge per 3DTV? E) What is Las-O-Vision’s daily profit?

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1A For KindOfBlue jeans the demand elasticity is 089 Th... View the full answer