Price Elasticity

question 32

Essay

Price Elasticity. Z-Best Pizza recently decided to raise its regular price on medium pizzas from $9 to $12 following increases in the costs of labor and materials. Unfortunately, sales dropped sharply from 8,100 to 4,500 pizzas per month. In an effort to regain lost sales, Z-Best ran a coupon promotion featuring $5 off the new regular price. Coupon printing and distribution costs totaled $100, and caused only a modest increase in the typical advertising budget of $2,400 per month. The promotion was judged a success as it proved highly popular with consumers. In the period prior to expiration, coupons were used on 40% of all purchases and monthly sales rose to 7,500 pizzas.
A. Calculate the arc price elasticity implied by the initial response to Z-Best's price increase.
B. Calculate the effective price reduction resulting from the coupon promotion.
C. In light of this price reduction, and assuming no change in the price elasticity of demand, calculate Z-Best's arc advertising elasticity.
D. Why might the true arc advertising elasticity differ from that calculated in Part C?

Identify the role of physical characteristics of soil in forensic science.

Explain the significance of specific tools in linking individuals to crime scenes.

Understand the application of soil analysis in forensic investigations.

Analyze how soil characteristics can differ or remain consistent across geographical locations.

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Definitions:

Lawful

Conforming to, permitted by, or recognized by law or rules.

Employer

An individual or organization that hires and pays people to perform work or provide services.

Discriminatory

Showing prejudice or bias, particularly in a way that treats an individual or group unfairly based on characteristics such as race, age, sex, or disability.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, affecting their daily life and possibly requiring special accommodations.