b) If his marginal cost is $ 4 per shirt, what is his desired markup and what is his initial actual markup?
c) Was raising the price profitable?
Individual problem 6-3: To conduct an experiment, AMC increases movies tickets from $ 9 to $ 10 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, they changed their monds and discontinued the experiment. How did the timing affect their conclusion about profitability of increasing prices?
Individual problem 6-5: An end-of-aisle price promotions changes the price elasticity of a good from-2 to-3. If the normal price $ 10, what should be the promotional price be?
Salvatore’ s Chapter 5: Problems: 8, 15( b) and( c), and appendix problem 2( p. 215).
Problem 8: In a study published in 1980, B. B. Gibson estimated the following price and income elasticities of demand for six types of public goods.
a) Do these public goods conform to the law of demand? For which public goods is demand price elastic?
b) What types of good are these public goods?
c) If the price or cost of college and university education increased by 10 % and, at the same time, incomes also increased by 10 %, what would be the change in the demand for college and university education?
Problem 15: Starting with the data from Problem 6 and the data of the price of a related commodity for the years 1986 to 2005 given below,