Case Study : 1: what is the bell elasticity for The propagation? [pic] % change in metre demanded (from August ‘93 to may ’94) : 46 % Change in wrong : 33 E(p)= 0,46/0,33=1,3939 2: what is your expectation for the marking of the cross-elasticity between The time and The Daily wire? [pic] % change in quantity demended of The Daily cable: 3 % change in determine of The Times: 33 E(x,y)=0,03/0,33 =0,0909 reply: The sign of the cross-elasticity between The Times and The Daily Telegraph go away be positive (+) . (The Times and The Daily Telegraph are substitute goods). 3: The summate tax gross of The Times afterward the price-cut is growingd or decreased? The company fatigued tens of millions of sawbuck on implementation Murdoch’s dodge. Finally the total revenue of The Times after the price-cut decreased. 4: From the circulation’s perspective, neat price is profitable or not? The case of The solarize shows that from the circulation’s perspective , cutting price is profitable.
After oblation the demean price the circulation surged and the revenue growingd. The same situation was with The Times. 5. woodpecker Stothard: “The increase in circulation has made the paper a to a greater extent cute vehicle for advertiser’s? If the statement is true, is cutting price a profitable strategy? The advertisers have to pay for their advertisements in reports, so they prefer conduct the broadsheet with the highest circulation. The strategy of virulent price helps to i ncreasing the circulation of the newspaper (! lower price means more readers- higher circulation). So we stop say that cutting price is profitable strategy because it resulting increase in advertising.If you want to make a full essay, coiffure it on our website:
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