Ask Question
BusinessBusiness
18 October, 18:32

Breckenridge Ski and Snow Board Rental Co. charges 67 for a one day rental. At that price they average renting 159 sets of apparatus. Their yield management consultant recommended they lower their price to 56. At that price the consultant expects their average daily rental will be 205 sets of apparatus. At those prices and demand, what elasticity of demand can be expected? (Solve to two decimal places.)

+3
Answers (1)
  1. 18 October, 20:04
    0
    Price elasticity of demand = 1.76

    Explanation:

    Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.

    Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic

    PED is computed as follows:

    PED = % change in quantity / % change in Price

    % change in demand = (56 - 67) / 67 * 100 = 28.93081761

    % change in price = 16.41791045

    PED = 28.93/16.4179 = 1.762

    Price elasticity of demand = 1.76
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Breckenridge Ski and Snow Board Rental Co. charges 67 for a one day rental. At that price they average renting 159 sets of apparatus. Their ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The demand for a good or service is determined by what
Answers (1)
Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
Answers (1)
Coronado Company had the following department information for the month: Total materials costs $55000 Equivalent units of materials 10000 Total conversion costs $81000 Equivalent units of conversion costs 15000 What is the total manufacturing cost
Answers (1)
During the first quarter, Francum Company incurs the following direct labor costs: January $50,800, February $58,000, and March $65,200.
Answers (1)
The Robinson-Patman Act of 1936 Group of answer choices made conspiracy in the restraint of trade illegal.
Answers (1)
New Questions in Business
Sales and commission are based on selling price, not the costs you have been provided. Labor: 13.8 hours at 18.75 per hour Overhead: 92% of labor Material Costs: $65.
Answers (1)
When airbnb customers in malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.
Answers (1)
Curtain Co. paid dividends of $14,000; $17,500; and $21,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,400 shares of 7.0%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
In order to accomplish the productivity plan, several Subject Matter Experts from various parts of the organizational have been enlisted. As a result, you have noticed friction and conflict among team members.
Answers (1)
The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A clean price of $1,049 and the par value is $1,000. What is the invoice price
Answers (1)
Home » Business » Breckenridge Ski and Snow Board Rental Co. charges 67 for a one day rental. At that price they average renting 159 sets of apparatus. Their yield management consultant recommended they lower their price to 56.
Sign Up Forgot Password?