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
coldgirl [10]
3 years ago
6

. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i

s $35. You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the mid-point formula and these data. Select the correct implication from your work.
Business
1 answer:
Iteru [2.4K]3 years ago
7 0

Answer:

PED = 0.67 inelastic demand

you should not lower the price of the book

Explanation:

the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} /  {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(50 - 40) / [(50 + 40) / 2]} /  {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] /  [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

the PED = 0.67 which means that the demand is inelastic

if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.

You might be interested in
The agreement of the trial balance totals is an indication that all transactions have been properly recorded in the books of acc
Zina [86]

Answer:

No

Explanation:

The trial balance shows the totals of all transactions that have been recorded. It has no way of knowing if there are additional transactions that have not been recorded.

3 0
3 years ago
If marijuana were legalized, it is likely that there would be an increase in the demand for marijuana. If demand for marijuana i
Mkey [24]

Answer:

C. Higher prices but lower total revenue from marijuana sales.

Explanation:

The above scenario totally explains inelastic demand. Inelastic demand is when the buyer’s demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

When the price increases, people will still purchase roughly the same amount of the good or service as they did prior to the increase because their needs stay the same. A similar situation exists when there is a decrease in price demand will not increase substantially because consumers only have a limited need for the product.

4 0
3 years ago
Which of the following is NOT a key element in strategic planning as it is described in the text? a. The statement of cash flows
Colt1911 [192]

Answer:

(a) The Statement of cash flow

Explanation:

Income is ceaseless procedure where no vital vision is required. Since to run everyday activities you have to deal with the income so you can maintain your business admirably and productively.  

While for The statement of purpose, company's degree, articulation of corporate goals and organization's systems you should have vital arranging since it will show the region where corporate will run in future.

7 0
3 years ago
Which of the following is a true statement about a marketing plan?
4vir4ik [10]
The right answer for the question that is being asked and shown above is that: " Changes to the marketing plan are acceptable, but only in the earliest stage." Marketing plans <span>are business activities involved in accomplishing specific </span>marketing<span> objectives within a set time frame.</span>
8 0
3 years ago
While traditional and charismatic styles of leadership focus on ___________________________________, transformational leadership
tia_tia [17]

Answer:

personality vision, hard work personalities

Explanation:

  • Charismatic leaders are those that make use of their language style to charm and influence others. They often have the ability to communicate with people at a deeper level of understanding. While the transformational leadership style focuses on internal motivation and positive development of followers.
6 0
2 years ago
Other questions:
  • Which of the following might vary in on online purchase depending on where the purchaser lives?
    14·2 answers
  • When Steve is talking about his communications with employees, he says, "I constantly check in." The information Steve gets from
    10·1 answer
  • Sales for BMW models are often highest in the last model year. By adding versions like a convertible model or features such as a
    10·1 answer
  • Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fa
    15·1 answer
  • The exchange of a good or service is
    6·1 answer
  • What if the meaning of the cumulative EAC (cell M105) at the conclusion of Period 6?
    8·1 answer
  • You run a school in Florida. Fixed monthly cost is $5,435.00 for rent and utilities, $6,171.00 is spent in salaries and $1,545.0
    14·1 answer
  • On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The followi
    14·1 answer
  • A certain brand of coffee come in two size. An 11.5 ounce package costs 4.24. 27.8 ounce package costs 9.98
    14·1 answer
  • Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operat
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!