(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
For the final part, you were told that Nile.com is able to identify the customers within each group.
(Description)
The table consists of 2 columns: Group A (sales per week), Group B (sales per week). The table consists of 2 rows: Volume of sales before the 10 percent discount, Volume of sales after the 10 percent discount.
The first row: Volume of sales before the 10 percent discount is, 1.55 million sales per week for the Group A, and, 1.50 million sales per week for the Group B.
The second row: Volume of sales after the 10 percent discount is, 1.65 million sales per week for the Group A, and, 1.70 million sales per week for the Group B.
(Speaker)
If Nile.com wants to focus on increasing total revenue, should discounts be offered to group a, or to group b, to neither group, or to both groups?
From the last part, we already know that the discount offered to group a will cause total revenue to decrease.
(Description)
The following text is briefly written below the table:
The demand elasticity for Group A is:
The percent change in quantity divided by the percent change in price equals 6.25 percent divided by 10 percent equals 0.625.
The demand elasticity for Group B is:
The percent change in quantity divided by the percent change in price equals 12.5 percent divided by 10 percent equals 1.25.
(Speaker)
Group a has demand that is inelastic.
(Description)
The demand elasticity for Group A is labeled inelastic.
(Speaker)
The Nile.com should only offer the discount to customers in group b.
(Description)
The demand elasticity for Group B is labeled elastic.