{"id":284,"date":"2016-09-22T08:00:19","date_gmt":"2016-09-22T15:00:19","guid":{"rendered":"http:\/\/pages.palomar.edu\/jesteban\/?page_id=284"},"modified":"2016-10-11T08:55:27","modified_gmt":"2016-10-11T15:55:27","slug":"case-studies-elasticity","status":"publish","type":"page","link":"https:\/\/pages.palomar.edu\/jesteban\/home\/case-studies-elasticity\/","title":{"rendered":"Case studies &#8211; elasticity"},"content":{"rendered":"<div id=\"pl-284\"  class=\"panel-layout\" ><div id=\"pg-284-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-284-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-284-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<h2>Answer the following to determine your knowledge of elasticity:<\/h2>\n<p>1.\u00a0 Mary is a manager at a local store and has the following data for two products:<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><div id=\"pg-284-1\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-284-1-0\"  class=\"panel-grid-cell\" ><div id=\"panel-284-1-0-0\" class=\"so-panel widget widget_sow-image panel-first-child panel-last-child\" data-index=\"1\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-image so-widget-sow-image-default-8b5b6f678277-284\"\n\t\t\t\n\t\t>\n<div class=\"sow-image-container\">\n\t\t<img \n\tsrc=\"https:\/\/pages.palomar.edu\/jesteban\/wp-content\/uploads\/sites\/52\/2016\/09\/inelastic-elastic-demand.png\" width=\"627\" height=\"326\" srcset=\"https:\/\/pages.palomar.edu\/jesteban\/wp-content\/uploads\/sites\/52\/2016\/09\/inelastic-elastic-demand.png 627w, https:\/\/pages.palomar.edu\/jesteban\/wp-content\/uploads\/sites\/52\/2016\/09\/inelastic-elastic-demand-300x156.png 300w, https:\/\/pages.palomar.edu\/jesteban\/wp-content\/uploads\/sites\/52\/2016\/09\/inelastic-elastic-demand-500x260.png 500w\" sizes=\"(max-width: 627px) 100vw, 627px\" alt=\"\" \t\tclass=\"so-widget-image\"\/>\n\t<\/div>\n\n<\/div><\/div><\/div><\/div><div id=\"pg-284-2\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-284-2-0\"  class=\"panel-grid-cell\" ><div id=\"panel-284-2-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"2\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<p>The owner of the firm wants to maximize revenue for each product so she asks Mary to calculate the value of elasticity and she asks you - ace econ student - to calculate elasticity for both products and advice Mary which price to charge based upon your economics knowledge!<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><div id=\"pg-284-3\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-284-3-0\"  class=\"panel-grid-cell\" ><div id=\"panel-284-3-0-0\" class=\"so-panel widget widget_text panel-first-child panel-last-child\" data-index=\"3\" >\t\t\t<div class=\"textwidget\"><p>2. Compute the value of elasticity based upon the data in the table below:<\/p>\n<table id=\"tablepress-16\" class=\"tablepress tablepress-id-16\">\n<thead>\n<tr class=\"row-1\">\n<th class=\"column-1\">PRICE<\/th>\n<th class=\"column-2\">QUANTITY<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n<td class=\"column-1\">$[randnum min=\"20\" max=\"100\" id=\"x\" decimals=\"2\"]<\/td>\n<td class=\"column-2\">[randnum min=\"2\" max=\"10\" id=\"y\"]<\/td>\n<\/tr>\n<tr class=\"row-3\">\n<td class=\"column-1\">$[randnum id=\"x\" multiply=\"0.5\" decimals=\"2\"]<\/td>\n<td class=\"column-2\">[randnum id=\"y\" multiply=\"3\"]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><!-- #tablepress-16 from cache --><\/p>\n<p>Advice the firm owner as to what to do with prices to increase revenue - should the firm raise prices to increase revenue or lower prices?  Why?<\/p>\n<p>3. Cross-price elasticity between robots and drones is - 2.5 when the price of drones drops.  Explain what this means in terms of the relationship between the two products.  The forecast is that the price of drones will keep dropping - what advice would you have for the robot maker?  Why?<\/p>\n<\/div>\n\t\t<\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Answer the following to determine your knowledge of elasticity:1.\u00a0 Mary is a manager at a local store and has the following data for two products:<\/p>\n","protected":false},"author":115,"featured_media":0,"parent":13,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-284","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/users\/115"}],"replies":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/comments?post=284"}],"version-history":[{"count":9,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/284\/revisions"}],"predecessor-version":[{"id":372,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/284\/revisions\/372"}],"up":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/13"}],"wp:attachment":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/media?parent=284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}