Question 4 of 20

When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags.

Natali [406]

Answer:

0.25

Explanation:

$Percentage\ increase\ in\ price=\frac{6-4}{4}\times100$

= 50%

$Percentage\ Decrease\ in\ quantity\ demanded=\frac{800-700}{800}\times100$

= 12.5%

Therefore,

$price\ elasticity\ of\ demand=\frac{Percentage\ change\ in\ quantity\ demanded}{percentage\ change\ in\ price}$

$price\ elasticity\ of\ demand=\frac{12.5}{50}$

= 0.25

Hence, the price elasticity of demand over this price range is equal to 0.25

6 0

3 years ago

when efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price wil

Gelneren [198K]

When efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price will again equal marginal cost.

<h3><u>Explanation:</u></h3>

Marginal cost refers to the cost that is incurred due to the production of additional one unit of any goods or services. It includes all the cost in the production of the extra one unit of the product or services. For instance consider an organisation is planning to build a new machine fore the product of a product and the cost associated with building the new plant will be the marginal cost.

Pure competition market is also called as perfect market. Here there will be a large number of sellers who are the competitors selling a same product. In such a market when the efficiency gets disrupted, then the producers can involve in the reallocation of resources until product supply is such that price will again equal marginal cost.

8 0

4 years ago

The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2016, trial

dlinn [17]

Answer:

purchase of supplies 5,600

insurance expense 2,300 debit

prepaid insurance 2,300 credit

Explanation:

(1) What was the cost of supplies purchased during December?

invneotry identity:

beginning supplies + purchase = ending supplies + expense

the left side are the input. The supplies could come from previous prior or be pruchase.

The right side the outputit could be consumer or kept at stock

3,100 + p = 4,600 + 3,600

purchase = 4,600 + 3,600 - 3,100 = 5,100

(2) What was the adjusting entry recorded at the end of December for prepaid insurance?

beginning insurance 7,600

ending insurance (5,300)

adjustment: 2,300

there was insurance expired for the value of 2,300

6 0

3 years ago

In the cartel model Group of answer choices firms believe that price increases result in a very elastic demand, while price decr

bekas [8.4K]

Answer:

firms coordinate their decisions to act as a multi-plant monopoly..

Explanation:

A cartel is a group of countries or firms that have reached an agreement to work together in order to influence or decide market prices for goods and services by controlling sales and the level of production or quantity of output.

In the cartel model firms coordinate their decisions to act as a multi-plant monopoly, wherein the level of production or quantity of output is divided into many production plants.

<em>The main purpose of having the cartels do this is to make marginal cost (MC) equal to marginal revenue (MR) in the various production plants, so as to create monopoly profits by making sure each plant has its own cost. </em>

8 0

3 years ago

Jeeves consulting requires a performance evaluation method that is less time consuming to develop and administer and allows for

soldi70 [24.7K]

<span>Jeeves consulting needs a performance evaluation method in quantitative analysis and comparison. Because of this, they need a technique evaluation that will be of help of assessing and evaluating a performance. What they should use is the graphic rating scales as it fits the method they need to use as it is a performance appraisal method in a way of having to show quantitative analysis and comparison. It enables to show effective performance and to show rates and differences of what is being compared. It is easier to use for it is less time consuming in the process of administering and developing.</span>

4 0

3 years ago