{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Midterm Notes - Mathematics II Midterm Prep Optimization...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Mathematics II Midterm Prep Optimization Applications: Revenue = Quantity sold x Price per unit Profit = Revenue - Cost Net collection = Amount receivable collected - Amount of cost Price elasticity of demand = (% change in demand / % change in price) = (Δq / q) / (Δp / p) (p / q) . (Δq / Δp) Point elasticity of demand = lim Δ p 0 Δ / ) / ( q q Δ / p p η = (p / q) . f(p) ̍ e.g. η for function q = f(p) = 500-25p & when p = 10 η = 10 / f(10) . (-25) = 10 / [500-25(10)] . (-25) = - (10 / 250) . 25 = -1 η < 1 : Inelastic demand (% change in demand < % change in price) η > 1 : Elastic demand (% change in demand > % change in price) η = 1 : Unit elastic demand (% change in demand = % change in price) Markup: Markup = Selling price of product - Cost of product Profit = Markup - Cost of business Markup on cost Selling price = Cost + Markup Markup = Rate x Cost Markup on selling price Cost = Selling price - Markup
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Markup = Rate x Selling price Markup rate on selling price = Markup rate on cost / (1 + Markup rate on cost) Markup rate on cost = Markup rate on selling price x (1 + Markup rate on cost) Markdown amount = Rate x Selling price Shrinkage example
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern