Demand Elasticity and Pricing

# Demand Elasticity - THEMONTHG= WHOLESALEMARKET . 1.

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THE MO NTHG=LY WHOLESALE DEMAND FOR WATERMELON IN THE HONOLUL WHOLESALE MARKET Below is a monthly wholesale demand for watermelon in Honolulu. Given the following quantity data there are important questions that must be answered by the manager. 1. Assume that you are the manager of the China Town where most of the watermelon     how much monthly supply would youj allow to maximize revenue of the sellers 2. Assume you are a buyer representing the ABC stores in Honolulu, you buy  ______ wateremelon each month from China town to sell it the ABC stores in Waikiki. How mu charge at retail price. What is the percentage mark up. Quantity Price in  P' Revenue elasticity in 1000 lbs cents/lb 110 33.6 22.77 2504.26 -229.96 60 33.7 22.72 1363.26 -420.76 88 33.7 22.75 2001.67 -287.2 110 31.7 22.77 2504.26 -229.96 3575 17.5 25.88 92537.09 -8.04 4200 14.8 26.45 111077.4 -7 3055 15.2 25.42 77647.41 -9.24 4365 15.3 26.6 ### -6.77 717 16.3 23.31 16714.92 -36.13 692 25.7 23.29 16116.54 -37.4 128 25.8 22.78 2916.12 -197.76 0 0 22.67 0 #DIV/0! 0 0 22.67

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## This note was uploaded on 04/15/2010 for the course ECON 3020 taught by Professor Lucas during the Spring '10 term at Hawaii Pacific.

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Demand Elasticity - THEMONTHG= WHOLESALEMARKET . 1.

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