BUS 207 Lecture Notes - Port Moody, Study Guide, Cheeseburger
6 Dec 2018
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The tricities bus company is a regional bus line providing transit service between. An analysis of the monthly demand for transit reveals the following demand equation: The demand for the bus 207 textbook (qx) is given by the following equation: Qx = 100 - 5. 0 px + 1. 5 py 2 pz + 4. 7 ax. where. Px = the price of the textbook, currently selling at . 00. Pz = the price of the study guide accompanying the text, selling at . 00. Ax = advertising for the text, measured in units, and currently at 100. Py = the price of another managerial economics textbook, currently selling at . 00 (a) the revenues received by an author are frequently set at 15% of the publisher"s total revenue. Use price elasticity to determine whether from the author"s point of view, the textbook been underpriced or overpriced? (b) by how much would the demand for the textbook change if advertising were increased by.
