Suppose the price of apples rises from $3 a pound to $3.45...

Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to show the work you used to support your answer. Instructor Comments: Again, since you are given numbers in this assignment, use those numbers to solve for your answer. (This is true for all assignments. Whenever you are given numbers, use those numbers in your calculations and in solving for the final answer. You want to be as specific as possible.) Price elasticity ... click for more

Elasticity of demand problem

8.8 I need help with this ongoing homework problem, please show steps so I can learn to do other problems like it. The elasticity of demand for a firm's products are -2 and its advertising elasticity of demand is 0.1 a. Determine the firm's optimal advertising-to-sales ratio? b. If the firm revenues are $50,000.00, what is its profit-maximizing level of advertising?

Inverse demand function problem

8.7 If you help me solve this problem that would be great. Show steps if possible so I can learn from it. The manager of monopolistically competitive firm and your demand and cost functions are the following: Q=20 -2P and C(Q) = 104 -14Q + Q(2nd Power) a. Find the inverse demand function for your firm's product? b. Determine the profit-maximizing price and level of production? c. Calculate your firm's maximum profits? d. What long-run adjustments should you expect? Explain you findings. Thanks! When typing out a problem, how do you put the number to the power?

Deadweight problem

Looking at the attached file, the diagram shows the demand, marginal revenue, and marginal cost of a monopolist. a. Determind the profit-maximum output and input? b. What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? c. Calculate the deadweight loss of this monopoly?

Demand and cost function problem

See attached file. Thank you. I need some help on this homework problem. If you explain some of the answers so I can do a similar problem for more practice.