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DaniilM [7]
3 years ago
13

The price of strawberries falls from $1.50 to $1.00 per carton and the quantity demanded goes from 100,000 to 200,000 cartons. u

se the midpoint method to find the price elasticity of demand.
Business
1 answer:
klio [65]3 years ago
4 0
To solve for the price elasticity of demand, we utilize the formula below.

Price elasticity of demand = <span>% Change in Demand Quantity
</span>                                                  % Change in Price

where:    % Change in Demand Quantity = (Qnew -Qold)/Qold
               % Change in Price = (Pnew - Pold/)Pold

Using midpoint method, the formula changes to:

% Change in Demand Quantity = (Qnew -Qold)/Qave = (200000-100000)/150000 = 67%
             
  % Change in Price = (Pnew - Pold/)Pave = (1-1.5)/1.25 = -40%

Price elasticity of demand = 67%/-40% = -1.675%

<em>ANSWER: -1.675%</em>
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Delivery price = $40

The three-month risk-free interest rate (with continuous compounding) =8%.

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Solution

So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss

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In most cases, there is usually a long list of retailers before the goods reached the final consumers. This movement of goods between all the stakeholders involved can go through various locations, states, or regions before it finally gets consumed.

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Internal controls shield your business from fraud, theft, and mistakes. Effective internal controls preserve your assets, cut down on loss, and maintain the accuracy of your financial reporting, among other traits.

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