. A local firm produces three types of pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week).
Price
Pizza A (Qty)
Pizza B (Qty)
Pizza C (Qty)
12
800
0
100
11
840
0
200
10
880
400
300
9
920
800
400
8
960
1200
500
7
1000
1600
600
6
1040
2000
700
5
1080
2400
800
1. As per the price elasticity of demand what combination should be made to increas
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A local firm produces three types of Pizza, for delivery to homes in the area. The owner has completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week).
Price
Pizza A (Qd)
Pizza B (Qd)
Pizza C (Qd)
12
800
0
100
11
840
0
200
10
880
400
300
9
920
800
400
8
960
1200
500
7
1000
1600
600
6
1040
2000
700
5
1080
2400
800
Plot the three demand curves, on one graph. (It does not have to be Excel).
Calculate PED for all three pizzas over the price range $9 to $10. Use the midpoint formula (see your class lecture notes.)
Explain why the three PED measures are different. What change would make all three PED measures become more elastic? What about more inelastic?
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