Homework answers / question archive / 1)Why might customer satisfaction be a more appropriate objective than profitability? 2)Why might a company reduce its product range? 3)The table below presents the annual market for sofas in Akron, Ohio

1)Why might customer satisfaction be a more appropriate objective than profitability? 2)Why might a company reduce its product range? 3)The table below presents the annual market for sofas in Akron, Ohio

Economics

Share With

1)Why might customer satisfaction be a more appropriate objective than profitability?

2)Why might a company reduce its product range?

3)The table below presents the annual market for sofas in Akron, Ohio. Suppose the state government imposes a $200 excise tax on every sofa sold to be paid by customers at the point of sale. Market for Sofas Price Quantity of Sofas Quantity of Sofas Quantity of Sofas Demanded with (dollars) Demanded Supplied Excise Tax $1,240 140 290 90 170 270 120 1,120 200 250 150 1.06 230 230 180 1.000 260 210 210 940 290 190 240 320 170 278 820 350 15e 300 760 380 130 330 700 410 110 360 Instructions: Enter your answers as a whole number. a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron? pus 0sofas b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? sofas d. What is the total amount of revenue collected by the government from the excise tax on sofas?