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2 years ago

According to the midpoint method, the price elasticity of demand between points A and B is approximately (0, 0.6, 1.67, 22.5) .

Business

1 answer:

kvv77 [185]2 years ago

7 0

Because the demand between points A and B is inelastic, a $25-per-bike increase in price will lead to an increase, in total revenue per day.

in order for a price decrease to cause a decrease in total revenue, demand must be inelastic.

<h3>What is the price elasticity of demand? </h3>

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

When the coefficient of elasticity is less than one, it means that demand is inelastic. When demand is inelastic, it means that the quantity demanded is not sensitive to changes in price.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 40 - 35 = 5
Average of both demands = (40 + 35) / 2 = 37.50
Midpoint change in quantity demanded = 5 / 37.50 = 0.133

Midpoint change in price = change in price / average of both price

Change in price = 100 - 125 = -25
Average of both prices = (100 + 125) / 2 = 112.50
Midpoint change in price = -25 / 112,50 = -0,222

Midpoint elasticity of demand = 0.133 / -0,222 = 0.6

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

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Who are the main stakeholders that the y is attempting to reach with the information it has gained through its market research?

Hitman42 [59]

The main stakeholders that the Y is attempting to reach with the information it has gained through its market research are the Primary stakeholders and the Secondary stakeholders.

There are three types of market research- Descriptive, Exploratory, and Causal. Y has conducted causal market research wherein the effect of change on the current operations is quantified.

Here, in this causal market research, Y is attempting to reach the Primary stakeholders and the Secondary stakeholders with the information it has gained through its market research.

Primary stakeholders are those individuals, groups or entities who are involved with the monetary transactions of an organization. Primary stakeholders include- employees, customers, investors, banks, lenders etc.

Secondary Stakeholders are the stakeholder who are not directly involved in a company, thus, they have indirect influence over the company. Secondary stakeholders include- competitors, government, trade unions, community etc. These groups do not have any financial interest in the company.

Hence, the answer is given and explained above.

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2 years ago

Blue Spruce University sells 4,500 season basketball tickets at $140 each for its 12-game home schedule. Give the entry to recor

STatiana [176]

Answer:

a. Total revenue received:

= 4,500 * 140

= $630,000

Date Account Title Debit Credit

XX-XX-XXXX Cash $630,000

Unearned revenue $630,000

Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.

b. The revenue per game is:

= 630,000 / 12 games

= $52,500

Date Account Title Debit Credit

XX-XX-XXXX Unearned Revenue $52,500

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3 years ago

6: the cost of a protein bar increased from $2.50 to $2.80. the percent increase in the $2.80 rate was how much?

fredd [130]

<span>The original cost of protein bar = $2.50
The increased cost of protein bar = $2.80
Therefore, the increase in price of the protein bar = $2.80-$2.50 =$0.30 percentage increase = (Difference in price / Original price) x 100
=(0.30/2.50)x100
=(3/25)x100
=3 x 4
=12%</span>

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3 years ago

Each member of a cartel faces a temptation to cheat on the agreement because lowering its price slightly below the established p

ryzh [129]

Answer:

True

Explanation:

This is probably one of the greatest issues that cartels around the world face, since their agreements are difficult to maintain because it is very difficult to control the price and output policies of its members.

Even the largest cartel in the world, the Organization of the Petroleum Exporting Countries (OPEC), has problems when it comes to monitoring the petroleum output of its members. When some countries need more money they just increase their petroleum production even if the rest of the cartel doesn't agree with it.

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3 years ago

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Digiron [165]

Answer:

Option B

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3 years ago