Question

A store owner is selling shirts at a price of $25 each. At this price, 300...

A store owner is selling shirts at a price of $25 each. At this price, 300 shirts are sold. The owner then puts the shirts on sale, offering them for $20 each. At this price, 400 shirts are sold. What is the price elasticity of demand in this example?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Case Study - Economics Pricing Justin has been selling 4,600 T-shirts per month for $6.50. When...
Case Study - Economics Pricing Justin has been selling 4,600 T-shirts per month for $6.50. When he increased the price to $7.50 he sold only 4,000 T-shirts. a. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? b. Was raising the price profitable?
Assume the price of a dress shirt was put on sale "buy one get one free"....
Assume the price of a dress shirt was put on sale "buy one get one free". The original price was $100.00 per shirt. The sale resulted in an increase of quantity sold in the same store for the same period of time from 200 shirts to 800 shirts. (a) Calculate the price elasticity of demand and interpret your results. (b). If the price of the shirt is further reduced by 10%, what will happen?
6. F Company manufactures and sells T-shirts. Last year, the shirts sold for $7.50 each, and...
6. F Company manufactures and sells T-shirts. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was $5,040. F Company’s expectation for the coming year include the following:-The selling price of the T-shirts will be $9.00-Variable cost to manufacture will increase by one-third-Fixed costs will increase by 10%-The income tax rate of 40% will be...
A business buys supply materials for $15 less 25%, 20%, and 10%. The store prices the...
A business buys supply materials for $15 less 25%, 20%, and 10%. The store prices the merchandise at a regular selling price to cover expenses of 5% of the regular selling price and the net profit of 50% of the cost. Business mark with the price to be able to offer a discount of 10% while still maintaining his regular markup. During the clearance sale, supply materials were sold at a markdown of 25%. 1. How much retailer pays for...
A department store is selling microwaves bought from a manufacturer for $300, less a 15% trade...
A department store is selling microwaves bought from a manufacturer for $300, less a 15% trade discount. The store has marked the microwaves up by 27%. What is the selling price of the microwaves? If the store discounted the microwaves by 10% , what would the operating profit or loss be if overhead expenses are 8 % of the cost ? ( the answers are selling price $323.85 and profit of $16.07 ... please make sure ur formula matches answers,...
A department store is selling microwaves bought from a manufacturer for $300, less a 15% trade...
A department store is selling microwaves bought from a manufacturer for $300, less a 15% trade discount. The store has marked the microwaves up by 27%. What is the selling price of the microwaves? If the store discounted the microwaves by 10%, what would the operating profit or loss be if overhead expenses are 8% of the cost ? Answer .... S=$323.85 , Profit of $16.07 .... need solutions please
Assume that a popular brand of men's shoes was selling at $500.00 per pair. At that...
Assume that a popular brand of men's shoes was selling at $500.00 per pair. At that price, a number of stores in a "District" sold 100 pairs of shoes in a week. The District manager then declares a sale of 20% on that brand of shoes. As a result, 160 pairs of shoes are sold in the following week. (a). Using arc elasticity formula, calculate the price elasticity of demand. (b). What is the mathematical relationship between price and quantity...
The owner of a popular independent clothing store has a particular t-shirt design that is her...
The owner of a popular independent clothing store has a particular t-shirt design that is her best-seller. Currently, she sells a weekly average of 11 shirts with this design. She wishes to know if slightly lowering the price of this particular design will sell more product per week. To test this, she records 14 weeks' worth of sales for this design when it is priced slightly lower than normal. With the lowered price, the average number of shirts sold per...
Assume that a popular brand of men's shoes was selling at $500.00 per pair. At that...
Assume that a popular brand of men's shoes was selling at $500.00 per pair. At that price, a number of stores in a "District" sold 100 pairs of shoes in a week. The District manager then declares a sale of 20% on that brand of shoes. As a result, 160 pairs of shoes are sold in the following week. (a). Using arc elasticity formula, calculate the price elasticity of demand. (b). What is the mathematical relationship between price and quantity...
1. If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes...
1. If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes increases by 10 percent, then the quantity of cigarettes demanded will fall by what percent? 2. If the price elasticity of demand for chicken is 2, then a 20% decrease in the price of chicken will lead to what percentage increase in the quantity demanded of chicken? 3. When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT