ECON 212- IP2 PRINCIPLES OF MICROECONOMICS

You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept. You call your friend, an economics professor, and ask, “What is the price elasticity of demand? What determines it? What is elastic and inelastic demand?” To really understand it, compute the following price elasticities of demand: The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded. Of the above examples, which is more elastic, and which is the least elastic? Why? Answer the following questions: Why is elasticity an important concept for a business? Bridge tolls Beachfront properties Gourmet coffee Gasoline Cell phones Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices of flowers, and why? What do you think the elasticities are in the flower business?
    • Posted: 6 years ago
    ECON 212- IP2 PRINCIPLES OF MICROECONOMICS (FIND A++++ SOLUTION)

    Purchase the answer to view it

    blurred-text
    Save time and money!
    Our teachers already did such homework, use it as a reference!
    • 800-900 words with references and no plagiarism

      You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in …

    • 800-1000 words
      Details:

      Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty …

    • Rated 2 times

      Elasticity

      Deliverable Length: 800-1000 words APA Style

      You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in …

    • ou just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determiningprices and what products to supply, so you decide to …

    • You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determiningprices and what products to supply, so you decide to …

    • You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determiningprices and what products to supply, so you decide to …

    • Not rated

      help please

      800-1000 words
      Details:

      Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy …

    • Description

      800-1000 words

      You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determiningprices and what products to …

    • You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determiningprices and what products to supply, so you decide to …