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1 year ago

) Studies also find that teenagers have a higher price elasticity than do adults. Why might this be true?

Business

1 answer:

Andru [333]1 year ago

5 0

This statement is true. Teenagers have a higher price elasticity than do adults.

This is because teenagers does not have much income to spend so they can shift to other products also. Teenagers are also not addict to smoking or any other habits , Therefore price affects the demand of the product.

Price elasticity is defined as the ratio of the percentage change in quantity demanded due to percentage change in price.

Elasticity having more than 1 are relatively more elastic.

Adults have more income to spent so the demand do not effects due to change in price. As adults are more addicted to smoking then teenagers ,

addicted people did not consume less due to its price change.

To know more about price elasticity:

brainly.com/question/13565779

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AysviL [449]

Answer:

60%

Explanation:

To calculate the percentage assigned to cost of goods sold , we should use the formula:

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3 years ago

In economics, if a good is inelastic,

Mariulka [41]

In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes. </u>

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

<h2>Further Explanation; </h2>

Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
When the price of an inelastic good changes, its supply and demand is unaffected.
Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.

<h3>Demand and supply in determination of market price </h3>

Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.

One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.
This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

<h2>Learn more about: </h2>

Demand and supply; brainly.com/question/6749722
Effect of supply and demand on market price: brainly.com/question/3522474

Level; High school

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

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3 years ago

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Explanation:

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3 years ago

Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor

patriot [66]

Answer:

The contribution margin per unit is $5.1

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The contribution margin per unit is the amount from selling price per unit after deducting all the related variable costs per unit. This is the amount that each product contributes towards covering the fixed costs.

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<u>Contribution margin per unit:</u>

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3 years ago

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taurus [48]

Answer:

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<u>Now, we can allocate overhead and calculate the total cost:</u>

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3 years ago