microeconomics help
In a job interview, SuperlativeBuy asks you whether they should run a 15% sale or not. They give you the following data about past sales and the behavior of two groups: loyalty-rewards members and those who aren't. Using the information below, justify whether they should run the 15% sale for loyalty-rewards members only, non-rewards members only, or both. (2 points for own-price elasticity of demand calculations and answer for loyalty-rewards members; 2 points for the same for non-rewards members; 2 points for loyalty-, non-, or both)
The quantity demanded by loyalty-rewards members increased from 1,482,000 to 1,567,000.
The quantity demanded by non-rewards members increased from 975,843,000 to 1,002,934,000.
The cross-price elasticity of Taco Siren and Taco Paul's is +1.89. The cross-price elasticity of pizza and pizza bagels is +.77. Why is the cross-elasticity of Taco Siren and Taco Paul's greater than the cross-price elasticity of pizza and bagels? (2 points for defining cross-price elasticity; 2 points for unpacking what each cross-price of elasticity means; 2 points for answering question)
Using the following information, calculate (using the midpoint formula) the own-price elasticity of demand as a Carhenge Souvenir T-shirt rises from $15 to $18 and the average tourist income is $30,000. (2 points)
Then calculate the elasticity when income is $40,000 and the price rises from $15 to $18. (2 points)
Now, use the midpoint formula to calculate the income elasticity of demand when the price of a T-shirt is $12 and average tourist income increases from $30,000 to $40,000. (2 points)
With the information given, is it possible to estimate of what will happen to the demand for Carhenge T-shirts when the price of a T-shirt is $12 and average tourist income increases from $40,000 to $50,000? If so, what is your estimate? (2 points)
Price of T-Shirt Quantity of T-shirts when avg tourist income is $30,000 Quantity of T-shirts when avg tourist income is $40,000 10 2,845 5,833 12 2,087 4,199 15 1,195 2,802 18 345 1,975
microeconomics help
In a job interview, SuperlativeBuy asks you whether they should run a 15% sale or not. They give you the following data about past sales and the behavior of two groups: loyalty-rewards members and those who aren't. Using the information below, justify whether they should run the 15% sale for loyalty-rewards members only, non-rewards members only, or both. (2 points for own-price elasticity of demand calculations and answer for loyalty-rewards members; 2 points for the same for non-rewards members; 2 points for loyalty-, non-, or both)
The quantity demanded by loyalty-rewards members increased from 1,482,000 to 1,567,000.
The quantity demanded by non-rewards members increased from 975,843,000 to 1,002,934,000.
The cross-price elasticity of Taco Siren and Taco Paul's is +1.89. The cross-price elasticity of pizza and pizza bagels is +.77. Why is the cross-elasticity of Taco Siren and Taco Paul's greater than the cross-price elasticity of pizza and bagels? (2 points for defining cross-price elasticity; 2 points for unpacking what each cross-price of elasticity means; 2 points for answering question)
Using the following information, calculate (using the midpoint formula) the own-price elasticity of demand as a Carhenge Souvenir T-shirt rises from $15 to $18 and the average tourist income is $30,000. (2 points)
Then calculate the elasticity when income is $40,000 and the price rises from $15 to $18. (2 points)
Now, use the midpoint formula to calculate the income elasticity of demand when the price of a T-shirt is $12 and average tourist income increases from $30,000 to $40,000. (2 points)
With the information given, is it possible to estimate of what will happen to the demand for Carhenge T-shirts when the price of a T-shirt is $12 and average tourist income increases from $40,000 to $50,000? If so, what is your estimate? (2 points)
Price of T-Shirt | Quantity of T-shirts when avg tourist income is $30,000 | Quantity of T-shirts when avg tourist income is $40,000 |
---|---|---|
10 | 2,845 | 5,833 |
12 | 2,087 | 4,199 |
15 | 1,195 | 2,802 |
18 | 345 | 1,975 |
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