Question

Vik and Fleet produce trainers in the sports-shoe market. For one of their main products they have the following demand curves: Vik PV = 175 _ 1.2QV Fleet Pf = 125 _ 0.8Q f where P is in Br and Q is in pairs per week. The firms are currently selling 80 and 75 pairs of their products per week respectively.

Answer 1

Answer:

see

Explanation:

.

For Vik: Qv = 80 pairs

Pv = 175 – 1.2*80 = £79

dPv/dQv = -1.2

Price elasticity of demand (Vik) = -1.2*(P/Q) =...