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explore the assumptions underlying price elasticity of demand

 

Customer Question

explore the assumptions underlying price elasticity of demand and apply them to the above set of circumstances. do you believe the computation of elasticity is an indicator price sensitivity? explain.

Submitted: 319 days and 13 hours ago.
Category: Single Problem
Value: J$1,870
Status: CLOSED

Accepted Answer

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Expert:  getsetgo replied 319 days and 12 hours ago.


getsetgo :

Hello

getsetgo :

Welcome to Just Answer!

getsetgo :

I am working on your question

getsetgo :

Hello

getsetgo :

Your question says: apply them to the above set of circumstances....

getsetgo :

What are those cirmustances?

JACUSTOMER-mxorgry3- :

Please read this is a part of the answer Ieft it out, sorry.

JACUSTOMER-mxorgry3- :

In 2000 the market demand for personal computers was 129 million units an dthe average manufacturer's price was $1922. The average gross was 20%. by 2003, prices dropped to an average of $1708 and demand grew to $161 million. Average gross margins slipped to 17% of sales.

JACUSTOMER-mxorgry3- :

i) calculate the annual % rate of the change in sales revenues and the total contribution over this three years period. explain your reasoning

getsetgo :

ok

JACUSTOMER-mxorgry3- :

2) the ques you had with elasticity comes next. Then evaluate the employment. I had a problem doing the calculation and not sure it is correct. could you give me the correct calculation for the elasticity. there the question has three parts. we could look at about 4-5 pages

getsetgo :

the nprice you are offering is low for 4-5 page answer

getsetgo :

I can do the calculation or you if you prefer to write the paper

JACUSTOMER-mxorgry3- :

do the calculation and a shorter page. would that be ok. I really just want to answer the question as the professor is looking for the correct answer not really a long lengthy paper.

getsetgo :

yes, that will be ok

getsetgo :

when do you need it?

JACUSTOMER-mxorgry3- :

shorten the pages to suit the money I pay. how much pages will I get?

getsetgo :

no problem. let me write. I do not shorten according to money you pay.I will try to make it long enough so that you can add something and make it suitable

JACUSTOMER-mxorgry3- :

the calculation is important. It leads to the other questions. i really appreciate your help. this is my first timeon the website. I would like it to work for me. I have ten more month in university. Thank you for your support and effort.

JACUSTOMER-mxorgry3- :

Looking forward to a good paper. Good bye until later. what is you name, I am sharon

getsetgo :

You can call me getsetgo

getsetgo :

Its my pleasure Sharon to work with you. KI will try my level best to serve you

JACUSTOMER-mxorgry3- :

thank you.

Expert TypeMaster's Degree
Category: Single Problem
Pos. Feedback: 100.0 %
Accepts: 90
Answered: 5/25/2012

Experience: MBA from premium institute. 9+ years experience at executive level in Fortune-200 company.

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Accepted Answer

Picture
Expert:  getsetgo replied 319 days and 5 hours ago.

Hello,
Please download your answer Here
Download calculation Here

Expert TypeMaster's Degree
Category: Single Problem
Pos. Feedback: 100.0 %
Accepts: 90
Answered: 5/25/2012

Experience: MBA from premium institute. 9+ years experience at executive level in Fortune-200 company.

Ask this Expert a Question >
Customer replied 318 days and 11 hours ago.

Thank you for the answwers. I have not received the answer for question 2).Evaluate the employment of profit-oriented marketing objectives from a moral/ethical perspective.

 

Customer replied 318 days and 9 hours ago.

I have receieved both answers. Thank you.

 

sharon

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Expert:  getsetgo replied 318 days and 9 hours ago.

Thanks for accepting the answer. I posted the answer of other question also:

http://www.justanswer.com/essays/6pmy2-evaluate-emploment-profit-oriented-marketing-objectives.html

Customer replied 318 days and 7 hours ago.

YearDemandPriceTotalMarginProfit
(in millionRevenue(in million)
units)(in million)
____________________________________________________________________
2000129$1,922 $247,938 20%49587.6
2003161$1,708 $274,988 17%46747.96
Renvue0.035118847
Profit-0.019464794
Price
Elasticity
of Demand =-1.871737029

 

 

 

Please explain the formulae for me.

 

When I put in the formulae that is what I get.

 

How do I get it to be 3.51%, -1.95%, instead of 0.035118847 and 0.010464794. Is it because I did not put on the three zeros for the million '000'.

 

I am not getting the dollar sign ($) in the profit column. Should I type it in after the formulae is calculated.

 

What does this sign means ^ ?

 

I understand the topics better now .

 

Thank you for your assistance.

Sharon

 

 

Accepted Answer

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Expert:  getsetgo replied 317 days and 18 hours ago.

This is cagr formula as explained in word file. When you convert .03 in percentage you multiply by 100. You can format cell and make data type percentage. For getting $ sign choose data type currency. Did you download other answer that i answered 2 days ago?

Expert TypeMaster's Degree
Category: Single Problem
Pos. Feedback: 100.0 %
Accepts: 90
Answered: 5/27/2012

Experience: MBA from premium institute. 9+ years experience at executive level in Fortune-200 company.

Ask this Expert a Question >
Customer replied 316 days and 6 hours ago.

I understand the explanation an dwill try it.

 

Yes I see the answers you sent me.

 

Thank you for your quick response.

Customer replied 316 days and 6 hours ago.

If I have asked for clarification will I have to pay again?

 

 

Picture
Expert:  getsetgo replied 315 days and 15 hours ago.

No, you do not have to pay again. You may please ask as many clarifications as you wish. By mistake I had hit answer button when I posted clarification. I will keep it in mind and post the clarifications as info request so that no Accept button appears at your end.

Regarding other question that I answered, please note that I will get paid only after you click on Accept button. That answer is awaiting your acceptance.41058.2118736111

 
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