.further information I can gather is this from the project is this based on assu
ID: 1135434 • Letter: #
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.further information I can gather is this from the project is this based on assumed value
Recommendations.om Pricing, Cash Elsand Peodustion In yuar job ax economic analyst at PoolVac, A t use youar re manager ar PoolVac make n series of pricing aod prochuction decisin. $240, atid sverage income in the US ix expected to be $60,000. Basedon d Industries is golng to price its auscemanic pood st the estimated (simple) demand function and elue inwerse demand function (refer to p.40 to learn more about inverse demand function) Show all work (all steps in your derivation) s. Assume the profñt-maximizing PoolVac charge for the Sting Ray if it wants to sel 1650 umies? Show all steps in yout ing quantity of Sting Rays , Q-1650. Based on the information given in problem S and the estimated inverse demand function obtained, what price (P) calculations. 7, Regardless of your prios ansuwers, assume the cutrent price (P) of a houid Sking Ray is $290,.00 arnd the current quantity (Q) of Sting Rays is 1650, Continue to assume that same average os expected P is $240, o $60,000 and that the current price of Howard Industries' sutomatie pool cleaner ( nts from the regression output, and the relevant point elasticity formulas, compute each income a. Using the above assumed values of the variables (P, Q, M, P), the estimated slope of the foliowing estimated point elasticities: . The point price elasticity of demand for Sting Rays (E). Show all work (steps). The point cross-price elasticity of demand for Sting Rays (E). Show all steps. The point income elasticity of demand for Sting Rays Ed. Show all steps. b. Is the algebraic sign of the estimated own price elasticity as expected? Briefly explain. Are the signs of the income elasticity and cross price elasticity as expected? Briefly explain. Use the relevant estimated point clasticities derived immediately above (in number T) as needed to answer the following questions and provide economic consultation to the manager of PoolVac. Note: Again, you must use the estimated point clasticities and the general elasticityExplanation / Answer
In the case of point elasticity, the midpoint of the demand curve shows that the elasticity of demand is -1 and the area above along the demand curve shows that the demand is elastic or tends to greater than 1 and become infinity at the upper point of the demand curve and the area below the demand curve shows that the demand is inelastic or tends to less than 1 and become zero at the lowest point of the demand curve.
In the case of substitute goods, the cross-price elasticity of demand is positive that means there exist the positive relationship between the price of one good and demand for another good. Whereas the cross-price elasticity of demand is negative of complementary goods which means as the price of one product increases then the demand for other good decreases.
In the case of income elasticity, the normal goods have positive income elasticity and for inferior goods have negative income elasticity.
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