In California, the Price Elasticity for Vanity License Plates Is

question 79

Multiple Choice

In California, the price elasticity for vanity license plates is .5 and their price is $78. California is:

• A) maximizing revenue since elasticity is less than 1 and revenue will increase after a price increase when demand is inelastic.
• B) not maximizing revenue since elasticity is less than 1 and revenue will increase after a price increase when demand is inelastic.
• C) maximizing revenue since elasticity is less than 1 and revenue will decrease after a price increase when demand is inelastic.
• D) not maximizing revenue since elasticity is less than 1 and revenue will decrease after a price increase when demand is inelastic.

Understand the concept and calculations involved in moving average and exponential smoothing models.

Differentiate between seasonal effects and cyclical effects.

Calculate moving averages for a given data set.

Identify advantages and disadvantages of the moving average forecasting model.

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