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Cross elasticity
Pioneer, a major competitor, sells 50-inch Plasma TV for MSRP base price of $3,689, and assume that before Sony’s proposed price cut, 180,000 units of Pioneer 50-inch Plasma TV were sold in a week. If the cross price elasticity of demand between Sony 46-inch LCD TV and Pioneer 50-inch Plasma TV is 2 over the range of the Sony’s price change, calculate the change in quantity sold of Pioneer 50-inch Plasma TV because of the proposed price cut of Sony LCD TV. Also, calculate the dollar amount of change in Pioneer’s sales of 50-inch Plasma TV following the price cut by Sony.
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Do a search on sony LCD problems, they have had massive problems right now and are blowing out the bravada as a I call it series! I love sony but they have a clouding issue right now. It can be seen on say an all black screen or a VCR or DVD blue screen. You will see cloud like fading all over the screen. Something about the lcd crystals not twisting uniformly to give the proper screen color. Also your comparing plasma to LCD, we could go on for hours! I think they call it the MURA effect, for the sony clouds. 2 cents
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