Fergana polytechnical institute faculty management in production department "economy" methodological instruction

Task 1. What refers to the measures of state (direct administrative) regulation of prices from the following, and what - to indirect state regulation:
1. Subsidizing.
2. Freezing prices.
3. Lending.
4. Tax policy.
5. Control over the prices of monopolies and large enterprises.
6. Depreciation policy.
7. An agreement with monopolies to limit their price activity in the interests of other producers.
8. Impact on the production costs of certain goods (establishment of preferential tariffs, prices for raw materials, fuel, materials).
9. Setting boundaries (price range).
10. State purchases of goods and services from private firms necessary for the functioning of all types of state property.
11. Impact on the demand and supply of specific goods in order to form a certain ratio between them.


Task 2.
A trading company purchases goods at a price of 200 USD. per unit and sells in the amount of 500 pieces weekly at a price of 255 c.u. As a result of the study, the marketing department proposed to increase the price by 7%. The elasticity of demand is 0.9. It is necessary to calculate how many units of goods need to be sold the company to keep its profit at the same level. What profit can the firm make after a price change of 7%, taking into account the state of demand?
SOLUTION.
Profit is found by the formula:
P \d (C-SS) * O,
where C - sale price;
CC - cost price (or, in our case, the purchase price);
O is the volume of sales.
1) Currently, at a price of 255 c.u. profit is equal to:
P \ (255-200) * 500 \d 27500 c.u.
2) If the price increases by 7%, the new price will be: 255*1.07 = 272.85 units.
In order to keep profit at the same level, ie. equal to 27500 c.u., it is necessary to sell units of goods equal to X:
(272.85-200)*X=27500
72.85*X = 27500
X = 377.5 or 378 items.
3) In conclusion, we determine what profit the company can receive after a price change of 7%, taking into account the state of demand.
As stated in the condition of the problem, the price elasticity of demand is 0.9.
The elasticity of demand reflects the percentage change in sales for a 1% change in price.
The coefficient of elasticity is found by the formula:
Ed = % change in demand / % change in price.
In our case, the price increased by 7%, and the elasticity coefficient is equal to
0.9. The % change in demand will be:
0.9 = x/7
x = 6.3%.
Therefore, the sales volume will decrease by 6.3% and will be:
O \d 500 * (100-6.3) / 100 \d 468.5 units.
Profit will be equal to:
P \d (272.85-200) * 468.5 \d 34130 rubles.