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1 year ago

The demand for ben & jerry's ice cream will likely be ________ the demand for dessert.

Business

1 answer:

kotykmax [81]1 year ago

7 0

The demand for ben & jerry's ice cream will likely be more price elastic than the demand for dessert.

<h3>What is the elasticity of Demand?</h3>

When all other conditions are equal, the elasticity of demand is a concept in economics that quantifies how responsive consumers are to shifts in the quantity desired as a result of a price adjustment. In other words, it demonstrates the number of things consumers are willing to buy as the cost of those products rises or falls.

By dividing the percentage change in quantity by the percentage change in price during a specific period, the elasticity of the demand formula is computed. It appears as follows:

Elasticity is defined as % change in quantity / % change in price.

The quantity demanded as a result of a percentage change in a product's price is hence the measure of demand elasticity. Demand can be elastic or inelastic depending on whether products' demand is more responsive to price fluctuations. When a product's demand is flexible, the desired quality is extremely responsive to price variations. When a product's demand is rigid, the desired quality does not adapt well to price variations.

Therefore, The demand for ben & jerry's ice cream will likely be more elastic than the demand for dessert.

For more information on the elasticity of demand, refer to the following link:

brainly.com/question/23301086

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Instructions are listed below.

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Answer:

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EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

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ii) Calculation of the return in each of the five events:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

iii) Calculation of the expected return:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

Total 1.0 $129.87

Explanation:

a) Data & Calculations:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 ?

B 0.09 $108 ?

C 0.3 $90 ?

D 0.25 $81 ?

E ? $225

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