Land's End Estimates a Demand Curve for Turtleneck Sweaters to Be

question 3

Multiple Choice

Land's End estimates a demand curve for turtleneck sweaters to be: $\textbf{ Log Q = .41 + 2.3 Log Y - 3 Log P }$
Where Q is quantity,P is price,and Y is a measure on national income.If the marginal cost of imported turtleneck sweaters is $9.00.(Hint: P (1 +1/E) = MC) .The optimal monopoly price would be:

• A)P = $13.50
• B)P = $26.50
• C)P = $27.50
• D)P = $34.50
• E)P = $56.22

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Definitions:

Trickle Down

A concept typically used in economics, suggesting that benefits for the wealthy will "trickle down" to everyone else; in other contexts, it can refer to the gradual spread of practices or benefits from higher to lower levels within a hierarchy.

High Self-esteem

A positive evaluation of oneself and confidence in one's abilities and worth.

High Conscientiousness

A personality trait characterized by diligence, carefulness, and thoroughness.

Internal Control

A process designed to assure the efficiency of operations, reliability of reporting, and compliance with laws and regulations within an organization.