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Y_Kistochka [10]
3 years ago
12

The price of cigars is $10, with a quantity demanded of 1,000 per day. If the price increases to $12, the quantity demanded decl

ines to 800 per day. What is the absolute value of elasticity of demand?
Business
1 answer:
saveliy_v [14]3 years ago
8 0

Answer:

PED = - 1

Explanation:

The PED or price elasticity of demand measures the sensitivity of quantity demanded to changes in price level. It is calculated by taking the percentage change in quantity demanded, which results from a change in price level, and dividing it by the percentage change in price level.

PED = percentage change in Quantity demanded / Percentage change in price

PED = [(800 - 1000) / 1000]  /  [(12 - 10) / 10]

PED = - 1

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Robert should use intermittent schedules of reinforcement to keep his employees mentally alert and interested. The procedure of learning through association to increase or decrease voluntary behavior using punishment and reinforcement is known as operant conditioning.

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<h3>What is the reserve requirement in monetary policy? </h3>

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4 0
3 years ago
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be
fredd [130]

Answer:

0.25

Explanation:

Given :

The $\text{consumers value}$ the non defective cars = $\$ 10,000$

We will consider all the defective $\text{ cars are used cars}$ only. This is only because the value of the used car is $ 2000 and it is lower than the price of a good car that is $10,000. Thus only defective cars are being sold as the old cars.

For a risk neutral customer, the price that he is ready to give for the new car is the reservation price of a non defective car. It means that (the amount of $ 8000 is the value of the good car x chances of getting a good car) +( the value of the bad car x chances of getting a bad car).

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$x\times 2000+(1-x)\times 10000=8000$

$10000-8000x=80000$

$8000x=2000$

$x=\frac{2}{8}$

  = 0.25

Thus the value of :

$x=\frac{2}{8} = 0.25$

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