In recent years, technology has greatly improved our listening experience through better earphones and headphones. Some of the popular brands offering headphones with the latest technology are Suny and Base.

Answer the following questions:

1. A new company called Company X is planning to enter the market for headphones. Their headphones use the latest technologies and are able to rival many existing popular brands. There are many positive reviews for Company X and it is believed that their arrival will provide consumers more options when choosing a headphone. The arrival of Company X's headphones will probably result in the demand for existing headphones to be more . Type I for Inelastic, E for Elastic or N for No changes.
2. Company X is experimenting to decide the best price to sell their newest headphones. In a surveyed market, it is estimated that 685 headphones can be sold in a day if it is sold at a price of $366. If prices drop to $312, more headphones can be sold and it is estimated that 846 headphones will be sold. What is the estimated price elasticity of demand using the mid-point formula? . Answer to the nearest two decimal places.
3. Assume that Company X is trying to maximise revenue. Considering your findings in part b), should Company X increase the price for this headphone in hopes to increase revenue? . Type Y for Yes, N for No or U for Unknown.

Answer rating: 100% (QA)

Qa Ans We can say that the demand for headphones with ANC will likely be 1 ... View the full answer