The correct answer is 2.4.
The simplest way to define elasticity of demand is by using the following formula:
Elasticity of Demand = Change in Demand / Change in Prices
Then, in our question we have:
Demand Elasticity = 12% / 5% = 2.4
Why is it called elasticity of demand?
An elastic product is one in which demand significantly shifts in reaction to price fluctuations. In other words, the product's demand point has expanded significantly from its earlier point. It is inelastic if the amount purchased fluctuates little when the price of the good or service changes.
What Does elasticity of demand tells us?
It reveals how much the quantity needed alters in response to pricing changes made by the company. The price elasticity of demand explains how the amount sought in the market changes when the price changes if we are evaluating a market demand curve.
Learn more about elasticity of demand: brainly.com/question/23301086
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Answer:
the total productivity decreased from 1.66 to 1.53 due to the decreased in the productivity of the labor( from 6.67 to 5.5) and raw materials (from 5.71 to 4.88)
Explanation:
productivity is defined as the ratio of the output to input.
partial measures is defined as the ratio of the output to the single input or it is the ratio of the output to the labor or the ratio of the output to capital.
total measure is the ratio of the goods or services produced to all the inputs used in producing them.
LAST YEAR:
total productivity =
partial productivity for labor =
partial productivity for capital =
partial productivity for raw materials =
THIS YEAR:
total productivity=
partial productivity for labor= 5.5
partial productivity for capital = 4.4
partial productivity for raw materials = 4.88
A government will create a surplus in a market when it: Sets a price floor above the equilibrium price.
The equilibrium charge is the marketplace charge wherein the number of goods supplied is identical to the size of goods demanded. that is the factor at which the demand and supply curves inside the marketplace intersect.
Answer:
13.432%
Explanation:
The computation of the expected rate of return using the CAPM model is shown below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where ,
Beta is
= 2.16 × 0.60 + 0.69 × 0.40
= 1.296 + 0.276
= 1.572
Now placing the other items values
So,
= 4% + 1.572 × (10% - 4)
= 4% + 1.572 × 6%
= 4% + 9.432%
= 13.432%