1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
4 years ago
14

Suppose that when the price of a movie ticket is $4, 100 people attend the matinee. If the price is increased to $5, suppose tha

t only 50 people attend the matinee. Using the midpoint method in numeral form, the absolute value of the price elasticity of demand is _____.
Business
1 answer:
erik [133]4 years ago
6 0

Answer:

<u>3</u>

Explanation:

Price elasticity of demand refers to degree of responsiveness of quantity demanded to a change in price.

Price elasticity of demand is calculated as;

average price = \frac{5\ +\ 4}{2} = $4.5

Average quantity = \frac{100\ +\ 50}{2} = 75

Elasticity of demand (E_{d}) is given by \frac{change\ in\ quantity}{average\ quantity}  ÷ \frac{change\ in\ price}{average\ price}

= \frac{100\ -\ 50}{75} ÷ \frac{5\ -\ 4}{4.5}

= 3

Thus absolute value (ignoring the negative sign of change in prices) of price elasticity of demand is 3.

You might be interested in
Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
elena-14-01-66 [18.8K]

Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record.  This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

the previous business day will be April 11th (we should liook into the calendar and avoid counting Friday and saturdays

for the year 2019 April 12th is a friday so it is okay to define it as April 11th

7 0
3 years ago
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 32.50 Total fixe
Neporo4naja [7]

Answer: 26.5% increase

Explanation:

Current profit = Sales - Variable costs - fixed costs

= ((32.50 - 16.50) * 360 bears) - 1,420

= $4,340

Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears

New profit;

= ((32.50 - 16.50) * 432 bears) - 1,420

= $5,492

Effect of sales increase = ( 5,492 - 4,340) / 4,340

= 26.5% increase

8 0
3 years ago
Joey cuts lawns during the summer. Let q equal the number of acres mowed per day, and let L equal the number of hours worked per
Anna71 [15]

Answer:

The answer is B.

Explanation:

Marginal Productivity can be described as when every variable in the equation is held constant, it is the amount of productivity gained for every extra hour of labor that is put in.

And according to the information about Joey and his productivity cutting the lawns, we are provided the equation q = 0.2*L which means that for every extra hour Joey works cutting the lawns, Joey's marginal productivity is going to decrease by 0.2 or 20% so the answer is B.

I hope this answer helps.

7 0
4 years ago
Read 2 more answers
The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the m
Gekata [30.6K]
<h2>10 workers would cause the marginal  to exceed the marginal benefits.</h2>

Explanation:

  • Let us understand the term "Marginal benefits".
  • It is the additional amount that the consumer "willing to pay" for an additional goods or a service.
  • In terms of producers, the marginal benefit is termed as marginal revenue.
  • Here according to the situation given in the question as to how many workers to hire could be answered by the number 10.
  • Marginal revenue always falls below marginal cost.
  • It is the revenue that the organization receives for selling one additional unit.
8 0
4 years ago
Read 2 more answers
A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the product
Eduardwww [97]

Answer:

d. there is a technological improvement.

Explanation:

a) replacing production of one good in favor of another will be a move across the PPF

b) abandon inefficient production will bring the production to the PPF from a place below it.

c) has no relationship it will simply put inflationary pressure.

<em>d) the technological improvement will make a better use of the factor thus, increasing productivity and making possible more production with the same amount of materials.</em>

7 0
3 years ago
Other questions:
  • 22. On January 1, 2021, Princess Corporation leased equipment to King Company. The lease term is eight years. The first payment
    5·1 answer
  • Why might the federal government decide to intervene in the housing market to promote home​ ownership?
    7·1 answer
  • If menu costs were​ eliminated, the​ short-run aggregate supply curve will be
    14·1 answer
  • The cross price elasticity for coffee for a change in the price of tea is likely to be __________.
    12·1 answer
  • Two key components of corporate profitability are _________ and _________.
    15·1 answer
  • Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilitie
    13·1 answer
  • On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $65,400. During 2021, $103,000 was paid f
    7·1 answer
  • Which pricing policy would be best suited for a company that specializes in one unique product? Explain.
    9·1 answer
  • A firm can produce 1,000 bushels of wheat per year with two workers or 1,300 bushels of wheat per year with four workers. The ma
    13·1 answer
  • A fixed asset with a cost of $30,271 and accumulated depreciation of $27,243.90 is sold for $5,146.07. what is the amount of the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!