the pressure of cost-push inflation on profits

the pressure of cost-push inflation on profits
topic: the pressure of cost-push inflation on profits
In this week’s discussion you are going to be the CEO of a company. In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the pressure that cost-push inflation is having on profits. There will be some erosion of profits. Please make yourself CEO of only one of these hypothetical companies.Is the demand curve for your product relatively elastic, inelastic or unitary elastic? Demonstrate for your company’s product, by how much the quantity demanded will change if you pass on a 10% increase in cost. In other words, show your calculation of the percentage change in the quantity demanded if your prices are raised by 10%. You must provide a calculations showing the percentage change in quantity demanded.
Given your company’s price elasticity of demand and the industry supply/competitive environment you face, prepare a statement for your board as to the potential impact on profits. Who will pay the larger share of the cost increases, your firm or your customers?

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Style: Sentence Sentences are clear Sentences are clear Sentences are Sentences aren’t
structure and varied in but may lack generally clear but clear
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  punctuation. punctuation errors. be patterns of  
 
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