Need Help with this please

Author	All Replies
Just Friend @emirates.net.ae	Need Help with this please Can anybody help me in solving this question ? After raising the price of his/her product by 10 percent in January, your competitor’s revenue in January was reported to be 360,000 USD more than it was in December. The price in December was 100 Dollar per unit. Information on the number of units sold in December or January is not reported. You know from past records that the own price elasticity of demand for your competitor’s product is -0.80. Question: How many units did your competitor sell in December and how many units did he/she sell in January? Hints: 1. Revenue = price times quantity 2. January revenue minus December revenue = 360,000 USD. 3. January price = 1.10 times December price Thanks
	to forum · permalink · 2011-02-13 12:28:13 · (locked)
heat84 Bit Torrent Apologist join:2004-03-11 Fort Lauderdale, FL	I know I could've done this a couple years ago while I was taking microeconomics. I tried to refresh my memory on elasticity but this page made me go cross-eyed: »economics.about.com/cs/micfrohel···city.htm I don't remember it being that complicated when I learned it. Also it is 1:30 in the morning so my mind is far from optimal functioning capacity. -- Bit Torrent is my DVR.
	to forum · permalink · 2011-02-16 01:36:42 · (locked)

Cymbaline join:2004-05-21 H0H0H0 Reviews: ·TekSavvy DSL	reply to Just Friend Elasticity is represented as a negative. EOD=%change in quantity sold / % change in price Change in quantity is unknown (y) -.80= y /10% multiply 10% on both sides and we get -.80 x 10%=y y=-8% We're selling 8% less or 92% of original volume at the higher price. Volumenew=.92 x volume old (Volumenew X 110) - (volumeold X 100) = 360000 (volumeold x .92 x110) -(volumeold x100) =360000 (volumeold x 101.2)-(volumeold x 100)=360000 volumeold x (101.2-100)=360000 volumeold x (1.2)=360000 volumeold x =360000 / 1.2 Volumeold = 300000 units. Volumenew=.92 x volumeold = 276000 units Revenue December was 300000x $100= $30 000 000 Revenue January was 276000 x $110 = $30 360 000
	to forum · permalink · 2011-02-28 05:04:17 · (locked)
Romney2012 Defeat Obama 2012-Chg we can believe in Premium join:2002-03-03 USA kudos:4	reply to Just Friend Shouldn't you being doing your own homework?
	to forum · permalink · 2011-02-28 07:44:15 · (locked)

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