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My name is Ann [436]
2 years ago
14

17 responding to a customer's complaint you are a manager at home goods, which sells a wide variety of bath, kitchen, and other

household items. several months ago, you offered a special sale on a specific freshair humidifier, model 2850. a customer who purchased one of these humidifiers returned to your store last week to purchase more filters for the humidifier. however, your store no longer carries the freshair brand. although the store offers several replacement filters for other brands, you do not carry the specific model the customer requires. he wrote a letter to "the manager" complaining about the problem and indicating that he plans to tell everyone he knows not to bother buying products from your store because you don't stock the items needed to maintain them. although you don't have the filters in your store, you can special order them. how do you respond to the letter? what medium would you use? draft a message.
Business
1 answer:
abruzzese [7]2 years ago
5 0
How do you respond to the letter? what medium would you use? draft a message.

I would do a phone call that you have scripted. Mr. Donut, I received your letter regarding our store not carrying the filters for your humidifier. I sincerely apologize and want to make this right.

I am able to special order those filters. I will also follow up with customer service to remind them of the special order process. How many would you like to order? I will put a rush on this.
Can I help you with anything else?
We will call you when your items come in. We value all of our customers. Thank you for bringing this to our attention.
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Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity is used to measure the change in demand as a result of a change in price.

Formula is;

= % change in Quantity/ % change in Price

a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{60,000 - 100,000}{\frac{100,000 + 60,000}{2}} \\\\= -0.5

% Change in Price using midpoint formula

=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.5 - 1.00}{\frac{1.00 + 1.50}{2} } \\\\= 0.4

= -0.5/0.4

= -1.25

b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{100,000 - 60,000}{\frac{100,000 + 60,000}{2}} \\\\= 0.5

% Change in Price using midpoint formula

=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.00 - 1.50}{\frac{1.00 + 1.50}{2} } \\\\= -0.4

= 0.5/-0.4

= -1.25

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