Question.3360 - After reviewing the material in Chapters 3, please post and respond to the following topic on the course discussion board.Discussion assignments require that you post your contribution first, read the answers posted by your classmates, and reply to at least one posting. In order to see other students' posts, you must first submit your initial post to each forum. You must contribute to each discussion within the deadline.Please note that the discussion board participation will serve as a means of evaluating your participation in the course.Please be courteous and professional. You are the manager of a successful automotive dealership. You have estimated the income elasticity for your automobiles to be 0.9, while the price elasticity of demand for your automobiles is -1.25. Would you cut the price to increase your revenue? Discuss. You read in the newspaper that the Federal Reserve is estimating the economy will expand by 10% in the next quarter. What would be expected to happen to the total quantity of cars sold?
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Yes x would xxx the xxxxx to xxxxxxxx revenue xxxxx the xxxxx elasticity xx demand xx - xxxxxx is xxxx to xx elastic xx this xxxx we xxx see xxxx the xxxxxx elasticity xxxxxxxxx by xxx the xxxxx elasticity xxxxxxxxx by xxxx Revenue xx calculated xx Price xxxxxxxx Therefore xx order xx maximize xxxxxxx we xxxxx the xxxxx of xxxxxxxxxxx which xxxx lead xx a xxxxxx increase xx the xxxxxxxx demanded xxxxx our xxxxxx elasticity xx a xxxxxxxx in xxxxxx will xxxxxxxx the xxxxxxxx of xxxx sold xx There xxxxxx a xxxxxxxx relationship xxxxxxx income xxx car xxxxx As xxx consumer's xxxxxx rises xxx ability xx purchase x car xxxx increases xxxxxxx to x large xxxxxxxx of xxxx being xxxx Therefore xxx Federal xxxxxxxxx projection xx a xxxxxxxx expansion xxxxxxxxx an xxxxxxxx in xxxxxxx economic xxxxxxxx in xxx next xxxxxxx nbsp xxxxxxxxxxxxxx M xxxx Managerial xxxxxxxxx and xxxxxxxx Strategy xxxxxxxxxxx IrwinMore Articles From Economics
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