Tara owns a business that makes decorated facemasks. Using the mid-point method, the % change in...

Tara owns a business that makes decorated facemasks. Using the mid-point method, the % change in price for her premium facemask if she raises her price from $5 to $9 per mask is and the % change in quantity demanded if her sales drop from 300 masks a week to 200 masks a week with this change is . The price elasticity of demand for these facemasks (to 2 decimal pts) is . This elasticity number indicates that demand for these masks is elastic or inelastic? Does revenue for Tara’s business increase, decrease or stay the same when she raises her price to $9? . Knowing this, Tara should charge $ for her masks. At that price, Tara would make $ in revenue per week.

Solutions

Expert Solution

The price elasticity of demand had been calculated as per mid point elasticity method the formula for which has been clearly mentioned on first page of solution itself. The Elasticity has been calculated as (-)0.70 it means that it is inelastic (as it is less than 1) or Ed<1

So Tara could easily raise the price of facemask from$5 to $9 per unit as she can earn more revenue by doing this. The revenue will increase to $1800 from the Previous total revenue of $1500.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

A mid-point method is measured by using an of prices and quantities but a method is measured by using the slope of demand or supply curve.

A mid-point method is measured by using an ______ of prices and quantities but a ______ method is measured by using the slope of demand or supply curve.Group of answer choices：Slope: AverageSlope: Initial ValueAverage: SlopeInitial Value: Slope

Tara Kelly Inc. has the following Business Transactions relating to her INVENTORY ACCOUNT Tara Kelly purchased...

Tara Kelly Inc. has the following Business Transactions relating to her INVENTORY ACCOUNT Tara Kelly purchased Merchandise Inventory from Gillian’s Gems, $5,500 terms 2/10, net/30, FOB Shipping Point Tara paid freight on shipment from Gillian’s Gems $1,250 Tara sold Merchandise Inventory to Logan Inc for $8,250 Cost $5,400.Terms 2/10, Net/30 Tara returned $1,550 of Merchandise Inventory purchased from Gillian’s Gems Logan Inc returned $2,750 of Merchandise Inventory to Tara, cost $1,420. Tara paid Gillian within discount period. Tara paid $1,350...

Question 19 (1 point) Tara deposits money into an account with a nominal interest rate of...

Question 19 (1 point) Tara deposits money into an account with a nominal interest rate of 6 percent. She expects inflation to be 2 percent. Her tax rate is 20 percent. Tara’s after-tax real rate of interest Question 19 options: will be 2.8 percent if inflation turns out to be 2 percent; it will be higher if inflation turns out to be higher than 2 percent. will be 2.8 percent if inflation turns out to be 2 percent; it will...

Choose the statement that is true at the mid-point, or half-equivalence point, in the titration of...

Choose the statement that is true at the mid-point, or half-equivalence point, in the titration of a monoprotic weak acid and a strong base A)The moles of conjugate base and weak acid present in the solution are equal. B)The moles of strong acid and weak base present in the solution are equal. C)The moles of conjugate base and strong base present in the solution are equal. D)The moles of strong base and weak acid present in the solution are equal

What type of change did the elite planters see during the mid 1760s to mid 1780s

Elasticity is a unit-free measure by using the change and is a direction-free measure by using a __ method.

Elasticity is a unit-free measure by using the ______ change and is a direction-free measure by using a ________ method.Group of answer choices：Magnitude: Mid-pointMagnitude: SlopePercentage: Mid-pointPercentage: Slope

Create a python code that calculates fixed point iteration method using a for loop.

(1 Point) A sample of soils was taken by using the sand cone method. The sample...

(1 Point) A sample of soils was taken by using the sand cone method. The sample was placed inside a sealed jar and the total weight jar + sample was 3.08 lbs. The empty jar had weighted 0.75 lbs. before collecting the sample. After collecting the sample, the cone and the calibrated sand bottle were placed on the plate. The sand being used was calibrated in advance and it was determined its relative density was 2.55. The density of water...

A large healthcare enterprise in the mid-Atlantic region that was created by a merger owns two...

A large healthcare enterprise in the mid-Atlantic region that was created by a merger owns two acute care hospitals, a rehabilitation center, an outpatient surgical center, and three long-term care facilities. Each of these institutions uses a different EHR system. Admitting privileges extend to 550 physicians, who have office systems that interface with at least one of the acute care EHR systems. The vision is to create an environment to support communication, care coordination, and data sharing across the organization...

Using the freezing point depression method, how many grams of glucose is needed to make a...

Using the freezing point depression method, how many grams of glucose is needed to make a 3500mL solution which contains 6g MgSO4 and 7g sodium chloride isotonic with blood? Glucose ΔT1% = 0.10 Sodium Chloride ΔT1% = 0.576 MgSO4 ΔT1% = 0.1

Subjects