Business, 30.03.2020 16:23 xXCoryxKenshinXx

Peacock is debating decreasing the price of its rooms to $325 per night. Under the initial demand conditions, you can see that this would cause its total revenue to . Decreasing the price will always have this effect on revenue when Peacock is operating on the portion of its demand curve.

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Answer from: hannahmxx2

Decrease in price would have increasing effect on total revenue, when demand is elastic (upper portion of demand curve)

Decrease in price would have decreasing impact on total revenue, when demand is inelastic (lower portion of demand curve)

Explanation:

Elasticity is the responsive change in demand, due to change in price. P.Ed = % change in demand / % change in price = %ΔQ / %ΔP. Geometrically P.ed [on demand curve point] : (Lower portion on curve from the point) / (Upper portion on curve from the point)

Total Revenue is the total value of sale = Price x Quantity = P x Q

Elastic Demand : Demand responds more to price change. P.Ed > 1, %ΔQ > %ΔP. So, Price & total revenue are inversely related - price rise implies TR fall & price fall implies TR rise. Demand is elastic in upper portion of demand curve, as lower portion > upper portion at these points.

Inelastic Demand : Demand responds less to price change. P.Ed < 1, %ΔQ < %ΔP. So, Price & total revenue are directly related - price rise implies TR rise & price fall implies TR fall. Demand is inelastic in the lower portion of demand curve, as lower portion < upper portion at these points.

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answer from: Quest

answer; false pretense;

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Peacock is debating decreasing the price of its rooms to $325 per night. Under the initial demand co...

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