home exercises 21-11 marketing tut 3.docx

Uploaded by Anonymous User at 2019-11-20

Word file of the homework :)

Can someone please explain this?
first you calculate the fixed amount per unit (50€ per unit) then you add the variable price per unit (20€ per unit) together it is 70€ per unit! The price you gain by selling is 73.43 (calculated in part a) then you subtract it and find out that you gain 3.43 per unit, so the answer is yes you do make profit (3.43 *500 units)
Thank you so much!
this isn't in millions
Elasticity is change in Qd/change in P so 36/12 = 3