Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 3, Problem 6CACQ

You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1.5 and me cross price elasticity of demand between products Y and X is -1.8. How much will your firms total revenues (revenues from both products) change if you increase the pre of good X by 2 percent?

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You are the manager of a firm that receive revenue of Rs.30,000 per year from product X and Rs. 70,000 per year from product Y. The own price elasticity of demand for product X is -2.5 and the cross price elasticity of demand between product Y and X is 1.1. How much will you firm’s total revenue (revenues from both products) change if you increase the price of good X by 1 present?
You are the manager of a firm that receives revenues of $20,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -3, and the cross-price elasticity of demand between product Yand X is -1.3. 1 percent? How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign.
Your firm’s research department has estimated the income elasticity of demand for nonfed ground beef to be −1.94. You have just read in The Wall Street Journal that due to an upturn in the economy, consumer incomes are expected to rise by 10 percent over the next three years. As a manager of a meat-processing plant, how will this forecast affect your purchases of nonfed cattle?

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• Illustrate and interpret shifts in the short-run and long-run aggregate supply curves.

Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)

• Illustrate and interpret shifts in the short-run and long-run aggregate supply curves.

Economics of Money, Banking and Financial Markets, The, Business School Edition (4th Edition) (The Pearson Series in Economics)

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