a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”. b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated forecast. To increase the number of points received, justify your forecast for these changes with the help of formulas and graphs you know. c. Choose the new (above £12) price for the MikeBroonie’s pillows. Calculate how much sales, revenue, and profit will change as effect of price growin
MIcro:
The company “Mike Broonie” operates in the market of
a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”.
b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated
c. Choose the new (above £12) price for the MikeBroonie’s pillows. Calculate how much sales, revenue, and profit will change as effect of price growin
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