Economics of Enterprise Answers

Explain the type of pricing strategy that you as the manager of a company would implement for Good
X and Good Y with the following price elasticity of demand co efficients. Use diagrams to motivate
your answer.
a). Good X: 2.3 (10)
b). Good Y: 0.6 (10)

The value of the market basket in the base year is $36,700. How much is the price index in this year?

Derive the smallest value of A that includes outside investors to provide capital of $(150000-1A) to Maddox. Hint: you need to assume that Maddox will take the minimum stake as calculated In c.

two types of fiscal policy

A company has established that the relationship between sale price for one of its product and the quantity sold per month is approximately D = 780 -10p units (D is the demand or quantity sold per month, and p is the price in pesos). The fixed cost is P800 per month, and the variable cost is P30 per unit produced. What number of units, D*, should be produced per month and sold to maximize net profit? What is the maximum profit per month related to the product?

Do=1500-10Po+4Y+Pa
So=800+2Po
Find demand equation for oranges in terms of price for oranges( Po),when Y is ₹500 and Pa is ₹60.
Find equilibrium price and quantity.
What is the excess demand or supply if government sets the price ₹250.

Suppose the market demand and supply equations for as product are
Qd = 25-3p
Qs=10+2p
What are the equilibrium price quantity for this product?

1. The demand for petrol rises from 500 to 600 Barrels when the price of a particular scooter is reduced from Birr. 25000 to Birr.22000. Find out the cross elasticity of demand for the two. What is the nature of their relationship?
A company has the following demand equation
Q= 1000–3000P+10A
Q = Quantity demanded
P = Product Price
A = Advertisement expenditure
Assume that P = 3 and A = 2000
2. Suppose the firm drops the price to Birr. 2.50 would this bebeneficial.
3. Suppose the firm raises the price to Birr. 4.00 While increasingits advertisement expenditure by 100 would this be beneficial? Explain

The demand of a good is D=100-9.4P; the supply of it is S=9.2P-35. At the current market price, there is a surplus of a 9.0 units on the market. Please find the current market price.