All categories

3 years ago

Each month jessica buys exactly 15 big macs regardless of the price. jessica's price elasticity of demand for big macs is:

2 answers:

7 0

Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.

In this situation the price of the product does not affect the demand.

vodka [1.7K]3 years ago

3 0

Price elasticity of demand is a measure of the relation between consumer demand for a good and the price for that good. A higher elasticity value means that for each differential change in the price of that good, consumers will buy significantly more or less of the item. However, in this case, the consumer is buying the exact same amount of the product each month, regardless of the price. As such, an economist would say that Jessica's demand for Big Macs is completely inelastic; that is, the value of the price elasticity is zero.

You might be interested in

Other than mr. tambourine man, which is another bob dylan song that appears in coriglianoâs song cycle

natita [175]

There's actually 7 one of which is "Blowin in the wind"

7 0

3 years ago

(a) Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million i

Juliette [100K]

Here, we are going to prepare the balance sheet of Bank of Marienfield using the information given in the question..

Formula for Total liabilities is Capital + Checkable deposit + Loan from bank

Given Information

Capital = $150 Million

Checkable deposit = $100 Million

Loan from bank= $50 Million

Total liabilities = $150 Million + $100 Million + $50 Million

Total liabilities = $300 Million

Additional given Information

Commercial loan = $150 Million

Investment in shares = $120 Million

Investment in Treasury bonds = $20 Million

Required reserve = Checkable deposit * Required reserve rate

Required reserve = $100 Million * 10%

Required reserve = $10 Million

Excess reserve = Total liabilities - (Commercial loan + Investment in shares + Investment in Treasury bonds + Required reserve)

Excess reserve = $300 Million - ($150 Million + $120 Million + $20 Million + $10 Million)

Excess reserve = $300 Million - $300 Million

Excess reserve = $0 Million

Balance sheet of Bank of Marienfield.

Assets Amount Liability Amount

Required reserves $10 million Bank capital $150 million

Excess Reserve $0 Checkable deposit $100 million

Commercial loan $150 million Loan from bank $50 million

Investment in shares $120 million

Invest. Treasury bond $20 million

Total $300 million Total $300 million

3 0

3 years ago

Costs, also called differential costs, are the additional costs from selecting a certain course of action.

Ilia_Sergeevich [38]

It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action.

<h3>What is differential costs?</h3>

Differential cost serves as the difference between the cost of alternative decisions.

Therefore, It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action and the cost do take place when a business have several similar options,

Learn more about differential costs, at

brainly.com/question/25799822

#SPJ1

8 0

2 years ago

The consumer price index tries to gauge how much incomes must rise to maintain

polet [3.4K]

Answer: a constant standard of living

Explanation:

6 0

3 years ago

Which option is an example of labor as a factor of production?