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2 years ago

If the price elasticity of demand for a product is 2. 5, then a price cut from $2. 00 to $1. 60 will:_______

Business

1 answer:

hoa [83]2 years ago

3 0

Increase the quantity demanded by about 25 percent.

<h3>What is the short definition of price elasticity?</h3>

Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income.
It is mostly used to evaluate how consumer demand has changed as a result of a price change for a good or service.

<h3>What are some examples of price elasticity of demand?</h3>

When a price increase results in a greater percentage reduction in demand, we say a good is price elastic.
For instance, if price increases 20% and demand declines 50%, the PED equals -2.5. One illustration is Heinz soup. Heinz soup options are plenty today.

learn more about price elasticity of demand here

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Novak’s Market recorded the following events involving a recent purchase of inventory: Received goods for $112000, terms 2/11, n

Arte-miy333 [17]

Answer:

Option (C) is correct

Explanation:

The payment is made during the discount period of 11 days so the 2% discount rate would be applicable.

Goods purchased = $112,000

Goods returned = $2,200

Discount = (Goods purchased - goods returned) × 2%

= ($112,000 - $2,200) × 2%

= $2,196

Net purchase = Goods purchased - returned - Discount

= $112,000 - $2,200 - $2,196

= $107,604

Total inventory cost = Net purchase + Freight cost

= $107,604 + $400

= $108,004

Therefore, company’s inventory increased by $108,004.

5 0

3 years ago

What broadway play holds the record for highest single-week sales?

Ghella [55]

To kill a mocking bird

8 0

3 years ago

The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surp

SSSSS [86.1K]

Answer:

C. subtracting the competitive level producer surplus from the producer surplus associated with less output

Explanation:

A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.

Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.

The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output

7 0

2 years ago

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a p

Kay [80]

Answer:

13.31%

Explanation:

some information is missing:

Year Cash flows

0 −$1,100

1 $450

2 $470

3 $490

the easiest way to calculate the IRR is by using a financial calculator, IRR = 13.31%

but if we don't have one at hand, the IRR is the discount rate at which a project's NPV = 0

1,100 = 450/(1 + r) + 470/(1 + r)² + 490/(1 + r)³

to simplify the formula we must use trial and error:

since we already know the real IRR, I will start with a close number like 10%

1,100 = 450/(1 + 0.1) + 470/(1 + 0.1)² + 490/(1 + 0.1)³

1,100 = 409.09 + 388.43 + 368.14

1,100 ≠ 1,165.66

since the NPV is still positive, we must increase the discount rate. following the example we can use 12%

1,100 = 450/(1 + 0.12) + 470/(1 + 0.12)² + 490/(1 + 0.12)³

1,100 = 401.79 + 374.68 + 348.77

1,100 ≠ 1,125.24

we must increase the discount rate even more to 13%

1,100 = 450/(1 + 0.13) + 470/(1 + 0.13)² + 490/(1 + 0.13)³

1,100 = 398.23 + 368.08 + 339.59

1,100 ≠ 1,105.90

we keep increasing the discount rate to 14%

1,100 = 450/(1 + 0.14) + 470/(1 + 0.14)² + 490/(1 + 0.14)³

1,100 = 394.74 + 361.65 + 330.74

1,100 ≠ 1,087.13

since now the NPV is negative, the discount rate must be between 13-14%

we continue this way until we finally reach 13.31%

4 0

3 years ago

Another differing viewpoint is offered by Vivek Wadhwa. Mr. Wadhwa agreed with Mr. Grove that a bigger focus on creating U.S. jo

Inessa [10]

Answer:

He stated that most United states companies that are blue-chip will be the first to suffer the effects from a trade war.

Explanation:

Solution

Mr. Wadhwa came in terms with Andy Grove not fully as he did not find the protectionist trade war as acceptable.

He stated that it will greatly affects those firms who got their sales majorly from abroad. although, he favored need of more job creation in the United States.

Mr. Wadhwa’s main issue was that going for protectionist trade, where products which are produced off-shore and then transported to United States will be forced to pay more taxes, this will have a negative effect over existing large Blue chip organizations or firms.

Hence, he suggested to focus more over mid-career entrepreneurship.

6 0

3 years ago