Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

with info below QAW = -150,000 - 2400PAW + 1520 PG + 1200Pp - 1200P IPHONE + 44A QAW is the quantity of Apple Watches

with info below

QAW = -150,000 - 2400PAW + 1520 PG + 1200Pp - 1200P IPHONE + 44A

QAW is the quantity of Apple Watches sold per week

PAW is the price of an Apple Watch in dollars per unit;

PG is the price of Samsung Gear smartwatch in dollars per unit;

Pp is the price of the Pebble Steel smartwatch in dollars per unit;

P IPHONE is the price of an iPhone;

A is the quarterly advertising budget for Apple Watch in thousands of dollars

  1. Apple sold 177,200 watches per week.

PAW =349 Pg = 380, Pp= 220 PiPhone= $299 A = 15,000

QAW =-$150,000 - 2400(349) + 1520(380)+1200( 220) - 1200 (299) + 44(15,500)

QAW=$177,200

  1. The price elasticity of demand for Apple Watch is -4.726

-2400(349)= -4.726

177,200

what is cross price elasticity for apple watch and why? explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem-Solving Approach

Authors: Luke M. Froeb, Brain T. Mccann

2nd Edition

B00BTM8FK0

More Books

Students also viewed these Economics questions