Answer:
A) Price elasticity of demand (PED) = 1
B) the PED is unitary
C) Danny's total revenue will decrease to $562.50
Explanation:
A) the formula for calculating price elasticity of demand is:
PED = % change in quantity demanded / % change in price
- % change in quantity demanded = (300 - 250) / 250 = 50 / 250 = 20%
- % change in price = ($2 - $2.50) / $2.50 = -$0.50 / $2.50 = -20%
PED = 20% / 20% = 1
B) the PED is unitary, it means that for every 1% change in the price, the demand will inversely change in 1%
C) since Danny lowered its price 20% from $2.50 to $2, he sold 20% more brownies, but his total revenue fell from $625 to $600. If he lowers his price even more, this time 25% to $1.50, his total sales will increase to 375 brownies, but his total revenue will continue to fall to $562.50
Answer:
insolvency
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.
In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.
Answer:
Prorating
Explanation:
Prorating refers to the amount that the seller is usually liable to pay the buyer as for the period of closing the deal to the date it is actually closed.
Basically any amount of rent that is earned by the seller on the property which is meant to be sold and that the buyer expected to settle the deal, on a date previous to the actual date on which the deal is done, then the amount of rent for such period is called prorated.
That is the closing amount of expenses or income in between the seller and the buyer, in a real estate transaction.
I did it on excel I’m going to show you what I have. If you can’t see it properly zoom in.
Here are the factors that determine preference for a concert ticket from the most important to the less important
- Band that is playing (if you really like the band, you will potentially ignore the other factors)
- Date of the concert (to make sure that you have no important matters to attend)
- Price of the ticket (to know whether you really can afford the ticket)
- Friends that are going