In April, before the change of price, the commodity A daily sales amount was 50
ID: 2619426 • Letter: I
Question
In April, before the change of price, the commodity A daily sales amount was 50 kg, by new prices 30 kg /day was sold. The price increased from 10 to 15 rub./kg. Calculate the demand reaction for price change.
In the year 2011, the prices for the 2010 year sales volume are indicated to have increased by 22%, and by 25% for the current year sales volume. Find the actual price change.
(15 points) Using the following data, find the absolute change value of commodity stocks due to the increase of turnover rate, and due to the change of sales turnover.
Indicators (mln.rub)
Previous year
Reporting year
Turnover
850
960
Commodities stocks
120
125
Indicators (mln.rub)
Previous year
Reporting year
Turnover
850
960
Commodities stocks
120
125
Explanation / Answer
Hi,
So elasticity of demand is given by Change in Quantity/ Change in Price
So elasticity = -0.4/0.5 = -0.8 this is what is your demand reaction to change in price.
Frankly I am not able to understand the other two questions; However let me guide you through the same.
Try using the standard costing formulas and it might help you as well.
Do let me know for any help.
Keep Chegging.
Regards,
Team Chegg :)