contestada

George has been selling 5,000 t-shirts per month for $8. 50. When he increased the price to $9. 50, he sold only 4,000 t-shirts. 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? was raising the price profitable?.

Respuesta :

Demand elasticity came in at -4.6154. The actual markup was 0.2167 as opposed to the desired markup of 0.5789. The increase was therefore not profitable.

What is division?

A number is split in division, which is a straightforward procedure. The simplest way to conceptualize it is as a set of things being distributed among a set of individuals, as in the example given above. In mathematics, division is the process of dividing a number into equal parts and calculating the maximum number of equal parts that may be formed. For instance, dividing 15 by 3 results in the division of 15 into 3 groups of 5 each.

Here,

The demand elasticity,

=[(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]

[(8000-5000)/(8000+5000)] / [(9.5-10.5)/(9.5+10.5)]

[(3000/13000)] / [-1/20}

60000/-13000

=-4.6154

The desired markup,

(9.5-4) / 9.5

= 0.5789

The actual markup,

1/4.6154

= 0.2167

The demand elasticity was -4.6154. The desired markup was 0.5789 and actual markup was 0.2167. Hence, The increment was not profitable.

To know more about division,

https://brainly.com/question/28598725

#SPJ4

Otras preguntas