Social Studies, 07.07.2020 02:01 NBAJUW5

In the computer market Lenovo estimate that price elasticity of it's super lite computer -12.64 and the cross price elasticity of demand is 7.35 .The company now reduce price of this model by 9% of its present price level , explain

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Answer from: korrinevbrulz2222

Based on the information given, the cross-price elasticity of demand will be -10.36.

From the complete information, the first thing to do is to calculate the change in quantity demanded. This will be:

- 12.64 = change in quantity demanded/change in price.

-12.64 = change in quantity demanded / 0.09

Change in quantity demanded = -1.14

Then, we will put the value into the cross-price elasticity of demand formula. This will be:

= -1.14/0.11

= -10.36

In conclusion, the cross-price elasticity of demand will be -10.36.

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Answer from: ttangelique

Lenovo reduced the price of the model by 9% because it is what the calculations of price elasticity and cross price elasticity is telling the company to do.

A negative -12.64 price elasticity of demand means that the quantity demanded for the product falls more than the price rises. For this reason, the company found it necessary to reduce the price, in order to prevent a fall in demand.

A positive cross price elasticity of 9% means that the quantity demanded for this product will increase more than the reduction in price when compared to another product (likely a substitute, for example: a computer produced by another company). For this reason, Levono decided to lower the price, because the loss in revenue from the price reduction will be offset by the higher demand.

Answer from: Quest

Ithink it would be choice b (county). hope this you!

Answer from: Quest

glass wants to live in a world of super heroes and villains. he have lived all his life trying to be responsible for the creating the origin story of a super hero; he schemed and caused many incidents (many of them fatal) hoping that someday someone with superpowers would show up and save the day.

he knew himself very much. he saw himself as a villain of a real-life super hero story. he was aware of his strengths (more than smart enough for being manipulative and scheming) and weaknesses (having fragile bones and having to rely on his mind to succeed).

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In the computer market Lenovo estimate that price elasticity of it's super lite computer -12.64 and...

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