Elasticity question a

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Elasticity question

a. How could a firm benefit from understanding the Total Revenue Test? i. How might the info help the firm make better decisions?

b. Given a downward sloping demand curve, explain why we see the 3 sections: elastic demand, unit elastic demand, and inelastic demand? i. A little high school math should help with this one.

c. List and explain the determinants of price elasticity of demand and give 2 examples for each one (do not use examples from the slides). i. There are

d. Relative to Elasticity of Supply, please explain the importance of time to a tomato farmer. i. How does time impact elasticity and the input utilization choices available to the tomato farmer?

e. Explain why a PepsiCo Sales Executive would benefit from understanding cross elasticity of demand and elasticity of demand when evaluating a recommendation to lower the price of Doritos. i. How does understanding cross elasticity of demand and elasticity of demand support better decision-making?

f. Explain why an Analyst working for the Anti-Trust Division of the Justice Dept. would benefit from understanding cross elasticity of demand when evaluating the proposed merger of Coca Cola Company and Pepsi. i. How does understanding cross elasticity support better decision-making by the analyst?