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 ,