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This Study Resource Was: Answer
This Study Resource Was: Answer
This Study Resource Was: Answer
Answer:
Part-A
m
er as
Calculate the point price elasticity of demand for Harrison Ford Focus SE
co
sedans.
eH w
o.
precentage change ∈quantity
rs e
price elasticity(ε p)=
precentage change∈ price
ou urc
o
Given that:
aC s
v i y re
0.10
price elasticity(ε p)=
ar stu
−0.025
Part-B
This study source was downloaded by 100000826498391 from CourseHero.com on 08-03-2021 15:16:13 GMT -05:00
https://www.coursehero.com/file/61838298/Optimal-Pricingdocx/
Given that:
So,
MC
P=
1
1+
εp
10,000+875
P=
1
1+
−4
m
er as
10,875∗(−4)
co
P=
eH w
−3
o.
P=13333 . 33
rs e
ou urc
o
aC s
v i y re
ed d
ar stu
sh is
Th
This study source was downloaded by 100000826498391 from CourseHero.com on 08-03-2021 15:16:13 GMT -05:00
https://www.coursehero.com/file/61838298/Optimal-Pricingdocx/
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