NO Price 2.739 2.7491 400O Ae r ou analysis. Cal decides to lower the price of gas to $2.729 per allon. After this charen the volume sold increased to 4,400 galons per day. He asks you to measure his b e gans or losses as a result of this price change. Faed costs are $250 per day What is the price elasticity of demand Can the demand be character as price elastic, price elast, or neither? By how much did revenues increase or decreas a result of the change in price By how much ad profits increase or decline? (Profits are revenue minus acts change 10.0 change 0.363 Elasticity of Demand 27.540 Elasticity Price Elastic By how much did revenues increase or decrease as a result of the change in price? S By how much did profits increase or decline? 4.00 1,055.60 sold per Price Revenue pricex gallons) Cost per Gallon Variable Cost cost Fed cost per per unit day volume) Total Cost Fixed + Variable) Daily Profit revenue - all costs) A re there from gestion cal decided to lower his price once again to $2.729 per cabion. Once a volume sold increases and settles at 4,300 gallons per day. He is worried that any further price will cause the discount station across the street to also lower its price, What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? by how much did revenues increase or decrease as a result of the change in price? By how much d oes increase or decline Profits are revenue minus al costs) Fasticity Select One By how much did revenues increase or decrease as a result of the change in price? By how much dki profits increase or decline? Gallons sold per Price Revenue price Calons Cost per Gallon Variable Costcost per unit Fed cost per day Total Cost Foxed. Vahel Daily Profit revenue al costs) Supply and Demand Graph Profit Maximization 99% 2. After seeing your analysis, cal decides to lower the price of gas to $2.739 per gallon. After this change, the volume sold increased to 4,400 gallons per day. He asks you to measure his business Eains or losses as a result of this price change. Fixed costs are $250 per day. Quantity 4400 4000 Average Price 2.739 2.749 Average What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? (Profits are revenue minus all costs) change 10.000% change 0363% Elasticity of Demand 27.540 Elasticity: Price Elastic Bly how much did revenues increase or decrease as a result of the change in price By how much did profits increase or decline? 400 1,055.60 Gallons sold per Variable Cost (cost per unit x Revenue (pricex gallons) Price Cost per Gallon Fixed cost per day Total Cost (Fixed +Variable Daily Pro (revenue day volume 3600 Answer question 3 below. Quantity Price 3. After seeing the result from question 2). Cal decided to lower his price once again to $2.729 per alon. Once again, volume sold increases and settles at 4,800 gallons per day He is worried that any further price cut will cause the discount station across the street to also lower its price. What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? (Profits are revenue minus all costs.) Sichange Elasticity of Demand Elasticity Select One By how much did revenues increase or decrease as a result of the change in price By how much did profits increase or decline? Gallons sold per Revenue pricex gallons) Prke Variable Cost (cost per units Daily Profit trevenue all Cost per Gallon Fixed cost per Total Cost (Fixed + Variable Supply and Demand Graph Profit Maximization