Answer to Question #43819 in Other Economics for Zohaib

Question #43819
The ABC company manufactures AM/FM clock radios and sells on average 3,000 units monthly at Rs.25 each to retail stores. Its closest competitor produces a similar type of radio that sells for Rs.28. a) If the demand for ABC product has an elasticity coefficient of -3, how many will it sell per month if the price is lowered to Rs.22? b) The competitor decreases the price to Rs.24. If cross-elasticity between the two radios is 0.3 what will the ABC's monthly sales be??
1
Expert's answer
2014-07-01T09:40:20-0400
The answer to the question is available in the PDF file https://www.assignmentexpert.com/homework-answers/economics-answer-43819.pdf

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

Assignment Expert
08.11.18, 17:57

Dear Nimo,
(Q2-3000)*(-0.3/13) = -0.3/13Q2 + 900/13
Here we can multiply -0.3/13Q2 by 10/10:
-(0.3*10)/(13*10)Q2 = -(3)/(130)Q2

Nimo
08.11.18, 14:30

-3/130Q2? How it come?

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS