Cheap Vcrs Use This Information To Predict The Annual Number Of VCRs Sold Under The Following Conditions:?

Use this information to predict the annual number of VCRs sold under the following conditions:? - cheap vcrs

Suppose the current market price of video players is $ 300, the average disposable income of consumers is $ (30,000, and the price of the DVD a replacement for the VCR) is $ 500. Under these conditions, the annual U.S. demand for VCR 5 million per year. Statistical studies have shown that for the video players, the price elasticity of demand -1.3. The income elasticity of demand for video is 1.7. The cross-price elasticity of demand as compared to DVD-Video Recorder is 0.8. Use this information to predict, sells the annual number of video player under the following conditions:

(a) increasing competition from Asia VCR causes a price drop to $ 270 with the income and the price of the DVD is not modified.

(b) reduction of income tax income, disposable income rose to $ 31,500 with prices unchanged.

(c) An inventor in Menlo Park invented a cheaper way to films that have reduced the price of a DVD for $ 400, while producing stable, the price of video players and revenue.

(d) All developments described in parts 1-3 occur simultaneously.