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posledela
2 years ago
5

Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20 percent whe

n the market price of candy increases from $0.50 to $0.60, then supply is
Business
1 answer:
swat322 years ago
3 0

The supply is elastic in nature.

Price elasticity expresses the percentage change in quantity required caused by a one percent increase in price while maintaining all other variables constant. If the elasticity is 2, a 1% increase in price results in a 2% decrease in amount demanded.

Price elasticity is computed with the help of formula given below:

Price elasticity of supply = % increase in quantity supplied / % increase in price

Price elasticity of supply = 20%/((.6-.5)/(.6+.5)/2)

Price elasticity of supply = 4.4

It is elastic in nature, because value of elasticity of supply is more than 1.

To know more about price elasticity click here:

brainly.com/question/5078326

#SPJ4

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Answer:

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Explanation:

Decision-making is the selection of best outcome among alternative courses of action. It involves the definition of problem, the identification of various alternatives, the identification of various outcomes, the evaluation of various outcomes based on pay-off and the selection of best outcome among alternative courses of action.

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3 years ago
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Answer and Explanation:

The computation is shown below:

The following formula should be used

= P/E ratio × EPS × (1 + growth rate)^n umber of years

a. The stock price in four years is

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A firm's dividends have grown over the last several years. 3 years ago the firm paid a dividend of $1. Yesterday it paid a divid
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