# Elasticity of Demand Assignment | Homework For You

Question 1
The Stop Decay Company sells an electric toothbrush for \$25. Its sales have averaged
8,000 units per month over the last year. Recently, its closest competitor Decay Fighter
reduced the price of its electric toothbrush from \$35 to \$30. As a result, Stop Decay’s sales declined by 1,500 units per month.
(i) What is the cross price elasticity of demand between Stop Decay’s toothbrush and Decay
Fighter’s tooth brush? Use the averaging formula. What does this indicate about the
relationship between the two products? (3 marks)
(ii) If Stop Decay knows that the price elasticity of demand for its toothbrush is -1.5, what price would Stop Decay have to charge to sell the same number of units as it did before the Decay Fighter price cut? Assume that Decay Fighter holds its price of its toothbrush constant at \$30 Use the averaging formula. (3 marks).
(iii)What is Stop Decay’s average monthly total revenue from the sale of its electric
toothbrushes before and after the price change determined in part (ii)? (2 marks)
(iv) Is the result in part (iii) necessarily desirable? What other factors would have to be taken into consideration? (2 marks)
Question 2
(a) Explain the differences between accounting profit, economic profit and normal profit
(3 marks).
(b) Suppose that due to changing tastes there is a sudden increase in demand for emu
meat.
(i) Assuming the costs of emu meat production remain unchanged, what would you expect
to happen to profits in the emu meat industry? (2 marks)
(ii) Assuming that there are low barriers to entry into the emu meat industry, explain why
resources would move into this industry? (2 marks).
(iii)In the long run, what would you expect to happen to profits in this industry? (1 mark).
(iv) Will normal profits occur in this industry in the long run? If so, explain why? Get Economics homework help today

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Good paper focus.
Customer 459061, April 6th, 2022
Good work.
Customer 458115, April 27th, 2022
Good work.
Customer 458115, May 24th, 2022
Thanks! Looks Great!
Customer 453375, December 4th, 2021
Retail
Thank you for your work. Some sentences required minimal edits for clarification/explanation. In the future, please review your sentences for clarity and readability. Consider also reading out loud before submitting. We look forward to future contributions.
Customer 463469, October 21st, 2022
Education
Good response.
Customer 454463, May 5th, 2022
All instructions followed!
Customer 463337, February 28th, 2023
Finance
Thank You
Customer 462669, March 11th, 2022
History
good!!
Customer 462657, March 6th, 2022
Thank you very much! Efficient and professional! I was literally "blocked" since 3 days
Customer 462519, February 3rd, 2022
Psychology
I received a 91 on the quiz, which is still a good gade.
Customer 452455, April 5th, 2023
GOVT 200
Plagiarism issue noted.
Customer 454799, July 11th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend