A tyre tube manufacturer faces a -1.6 price elasticity of demand for its tubes. It is presently selling 24000 units/month. If it wants to increase quantity sold by 4%, it must lower its price by _______

1. A tyre tube manufacturer faces a -1.6 price elasticity of demand for its tubes. It is presently selling 24000 units/month. If it wants to increase quantity sold by 4%, it must lower its price by ________.

Write Comment

Comments

Tags

Show Similar Question And Answers

QA->Tyre rotation is a recommended method to equalize the tyre wear. In doing the tyre rotation, generally, the spare wheel will be fitted to the :....

QA->An article is sold at Rs.4,If it is sold at a loss of 5%. What was the cost price?....

QA->After great change in the price of a commodity, there is no change in demand. The demand is known as ?....

QA->A block development officer whose monthly PTA is Rs.300 per month and the minimum number of days prescribed for tour in a month is 20 days. If he has travelled only 15 days in a month, his entitlement for PTA is:....

QA->Compared to cross ply tyre, the radial ply tyre has the disadvantage of :....

MCQ->A tyre tube manufacturer faces a -1.6 price elasticity of demand for its tubes. It is presently selling 24000 units/month. If it wants to increase quantity sold by 4%, it must lower its price by ________.....

MCQ->A manufacturer faces a -1.2 price elasticity of demand for its product. It is presently selling 7,500 units/day. If it wants to increase quantity sold by 9%, it must lower its price by....

MCQ->A company faces a -2.5 price elasticity of demand for its product. It is presently selling 10,000 units/month. If it wants to increase quantity sold by 6%, it must lower its price by....

MCQ-> Read the passage given below and answer the following questionsFirms are said to be in perfect competition when the following conditions occur: (1) many firms produce identical products; (2) many buyers are available to buy the product, and many sellers are available to sell the product; (3) sellers and buyers have all relevant information to make rational decisions about the product being bought and sold; and (4) firms can enter and leave the market without any restrictions—in other words, there is free entry and exit into and out of the market.A perfectly competitive firm is known as a price taker, because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. If a firm in a perfectly competitive market raises the price of its product by so much as a penny, it will lose all of its sales to competitors. When a wheat grower, wants to know what the going price of wheat is, he or she has to go to the computer or listen to the radio to check. The market price is determined solely by supply and demand in the entire market and not the individual farmer. Also, a perfectly competitive firm must be a very small player in the overall market, so that it can increase or decrease output without noticeably affecting the overall quantity supplied and price in the market.A perfectly competitive market is a hypothetical extreme; however, producers in a number of industries do face many competitor firms selling highly similar goods, in which case they must often act as price takers. Agricultural markets are often used as an example. The same crops grown by different farmers are largely interchangeable. According to the United States Department of Agriculture monthly reports, in 2015, U.S. corn farmers received an average price of $6.00 per bushel and wheat farmers received an average price of $6.00 per bushel. A corn farmer who attempted to sell at $7.00 per bushel, or a wheat grower who attempted to sell for $8.00 per bushel, would not have found any buyers. A perfectly competitive firm will not sell below the equilibrium price either. Why should they when they can sell all they want at the higher price?Source: Principles of Economics, Download for free at http://cnx.org/content/col11613/latest.According to the passage, why is a perfectly competitive firm a price taker?
....

MCQ-> Study the following information to answer the given questions. Eight friends— J, K, L, M, S, T, U and V are seated in a straight line, but not necessarily in the same order. Some are them are facing north while some face south. ♦ K sits second from the end of the line. U sits third to the left of K. ♦ T faces south. V sits fourth to the left of T. T is not an immediate neighbour of U. T does not sit at any of the extreme ends of the line. ♦ Both the immediate neighbours of J face north. J does not sit at any of the extreme ends of the line. ♦ J faces a direction opposite to that of V. (i.e. If V faces north then J faces south and viceversa.) ♦ L sits second to the left of J. ♦ Immediate neighbours of K face opposite directions (i.e. if one neighbour faces north then the other faces south and viceversa.) ♦ Persons sitting at extreme ends face opposite directions (i.e. If one person faces north then the other person faces south and viceversa.) ♦ As many people sit between V and J as between U and S. ♦ Immediate neighbours of U face same directions (i.e. if one neighbour faces north then the other also faces north and viceversa).Which of the following is true based on the given arrangement ?
....