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Old 01-25-2010, 08:21 PM
 
Location: Charlotte, NC
1,419 posts, read 2,451,170 times
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The current price of yoyos is $1.20. If Ed=.30, how much will the price have to decrease in order to increase sales by 10%? What formula would I use to calculate this? Thanks in advance.
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Old 01-27-2010, 06:12 AM
 
Location: Sandpoint, Idaho
3,007 posts, read 6,272,234 times
Reputation: 3310
Quote:
Originally Posted by princesasabia View Post
The current price of yoyos is $1.20. If Ed=.30, how much will the price have to decrease in order to increase sales by 10%? What formula would I use to calculate this? Thanks in advance.
Your price elasticity of demand should be negative.

Does this help?

-.30 = E = (∆Q/Q)/(∆P/P) = (∆Q/∆P)(P/Q) = (1.10)(1.20)/∆P

Solve for ∆P.

Good luck!

May I ask, what class this is for (HS, uni, etc) and where (US State, country)?


S.
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Old 01-28-2010, 03:40 AM
 
Location: Sandpoint, Idaho
3,007 posts, read 6,272,234 times
Reputation: 3310
Quote:
Originally Posted by princesasabia View Post
The current price of yoyos is $1.20. If Ed=.30, how much will the price have to decrease in order to increase sales by 10%? What formula would I use to calculate this? Thanks in advance.

silence...

you are welcome...
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Old 01-28-2010, 09:17 PM
 
20,187 posts, read 23,809,642 times
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Thats what you get for helping people... get used to it... hahahaha
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Old 01-29-2010, 07:05 AM
 
Location: Sandpoint, Idaho
3,007 posts, read 6,272,234 times
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I am sure she'll get around to it! Her other posts suggest a good person.

S.
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Old 01-29-2010, 07:16 AM
 
Location: Portland, Oregon
7,084 posts, read 12,035,240 times
Reputation: 4125
That's what happens when you do people's homework for them, for free.

You need to demand payment up front, at least a few beers.
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Old 01-29-2010, 07:50 AM
 
1,955 posts, read 5,260,726 times
Reputation: 1124
I suspect it was a post that needed an immediate response, not one several days later. Just my guess
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