Question: Hello! can someone help me with these problems? Thank you so much. Your answers would be a very much appreciated. These problems is based on

Hello! can someone help me with these problems? Thank you so much. Your answers would be a very much appreciated. These problems is based on the chapter 3 of Managerial Economics 12th edition book by McGuigan, Moyer and Harris.

3. The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm's daily sales of these sundaes have in- creased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range. 4. The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in rider- ship of 30 percent. a. Compute the price elasticity of demand for subway rides. b. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why? 5. If the marginal revenue from a product is $15 and the price elasticity of demand is -1.2, what is the price of the product? 6. The demand function for bicycles in Holland has been estimated to be Q = 2,000 + 15Y - 5.5P where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros and Y = 15(000) euros, deter- mine the following: a. Price elasticity of demand b. Income elasticity of demand

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