The elasticity for an 18 ounce tube of Coppertone Company's sun block is -4 in the southern U.S. and -3 in the northern U.S. If the price of the Coppertone is $7.30 in the north for this product, what should the firm charge for this product in the south?

AT&T offers a cable plan in the northeastern U.S. for $40/month, with the cable plan experiencing an elasticity of -3. AT&T is considering offering the same cable plan in the western US. The firm knows elasticity of demand = -4 in the west. What price should be presented to customers in the West?

Paul is a brand manager for FIJI water. He learned in Kroger Stores Central Indiana data that demand for FIJI water= 51,000 cases in Feb 2011 and 34,000 cases in Mar 2011. Price/case = $3 in Feb 2011 and $5 in Mar 2011.

Q9. The elasticity of demand is

Q10. Are the buyers price-sensitive or insensitive? Why?

E= ((34,000-51,000)/51,000)/((5-3)/3)

=-0.33/0.66

0.5

<1 insensitive