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Week 4 DQs - Sarah has been selling 5,000 baseball caps per quarter at $7.50 each. When she decreased the price to $4.50, the
Week 4 DQs - Sarah has been selling 5,000 baseball caps per quarter at $7.50 each. When she decreased the price to $4.50, the total sales reached 6,500 baseball hats. a.What is the demand elasticity? Show calculations. b.lf Sarah's marginal cost (MC) is $4 per cap, what would the desired markup be and what is the initial (actual) markup? c. Was decreasing the price profitable for Sarah's baseball caps business? Explain. Research and quote similar managerial decision in real life.
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To address each part of the question heres a detailed breakdown a Demand Elasticity Demand elasticity measures how sensitive the quantity demanded is ...
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Logistics And Retail Management Insights Into Current Practice And Trends From Leading Experts
Authors: John Fernie
1st Edition
9780849340840, 9781000893809
