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andreyandreev [35.5K]
3 years ago
11

Assume a steel company is willing to sell its alloy beams for $400 a piece and produce 100000 units. At a price of 449 they are

willing to sell 100,935 units. From this information, calculate the price elasticity of supply.
Business
1 answer:
Anna [14]3 years ago
8 0

Answer:

The price elasticity of supply is 0.0763 or 7.63%.

Explanation:

Price Elasticity of Supply shows response of quantity supplies to the price of the product supplied. Its Formula is as follow:

Price Elasticity of Supply = % change in supply / % change in price

Price Elasticity of Supply = (0.935% / 12.25%) x 100 = 7.63%

% Change in Supply = ( 100,935 - 100,000 ) /100,000 = 0.935%

% Change in Price = ( 449 - 400 ) / 400 = 12.25%

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4 years ago
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<em></em>

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3 years ago
g. You are deriving a gross income multiplier in the appraisal of a 14-unit apartment building. Market data is as follows: 16 un
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The GIM suggested for the 14-unit property is 8.

Data and Calculations:

                                            16 units      12 units        4 units

Selling price                   $1,200,000  $960,000   $480,000

Gross income                    $150,000  $120,000      $48,000

Gross Income Multiplier               8               8                  10

A 14-unit apartment building's suggested GIM = 8                

A property's gross income multiplier (GIM) measures the property value by dividing the property's sale price by its gross annual rental income.

Thus, the GIM suggested for the 14-unit property is <em>8.</em>

Learn more: brainly.com/question/14477119

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