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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.

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Wassamatta University is considering resigning its minimum qualifications for professors from possessing a master's degree to po
bulgar [2K]

Answer:

c. shift the supply curve of professors to the left ceteris paribus

Explanation:

Labour Supply curve shows the labour hours,  employees or workers are willing & able to supply, at given wage rates during a period of time.

The curve is upward sloping due to positive relationship between wage rates & labour. As more labour is supplied at higher wage rate, less labour is supplied at lower wage rates.

Change in any other factor other than wages, changes (shifts) the supply curve. Factor increasing labour supply shifts the supply curve rightwards. Factor decreasing labour supply shifts the supply curve leftwards.

The case given : as increase in the minimum qualifying eligibility for the job, decreases the number of people who are 'able' to supply labour as per the criteria. So, it decreases labour supply & shifts the curve leftwards.

8 0
3 years ago
B) Assume you are a brand manager of a clothing brand that offers formal clothing for
ss7ja [257]

Answer:

Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.

Explanation:

As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.

8 0
2 years ago
On April 1, Quality Corporation, a U.S. company, expects to sell merchandise to a French customer in three months, denominating
Inessa05 [86]

Answer:

D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered

Explanation:

Options include <em>"A) $20,000 Discount Expense plus a $12,000 positive Adjustment to Net Income when the merchandise is delivered. B) $20,000 Discount Expense plus a $12,000 negative Adjustment to Net Income when the merchandise is delivered. C) $20,000 Discount Expense plus a $20,000 negative Adjustment to Net Income when the merchandise is delivered. D) $16,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered E) $20,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered."</em>

<em />

Discount expense

= ($1.41 - $1.37) * 400,000 euro

= $0.04 * 400,000 euro

= $16,000

Adjustment at Delivery

= ($1.41 - $1.36) * 400,000 euro

= $0.05 * 400,000 euro

= $20,000 (positive)

6 0
2 years ago
Toyota's just- in- time system is an example of using transfer pricing to avoid price controls. backward (upstream) integration.
wel

Answer:

quasi vertical integration

Explanation:

Quasi vertical integration is the vertical integration in which there is ownership by one firm i.e. downstream that closed to point where consumption ends or the upstream where the specialized tool and equipment are used

Also the firm that controls has a strong position but it is less as compared with the real vertical integration

Therefore according to the given situation, the second option is correct

4 0
3 years ago
Who among the following is an operational leader? a. Joanna, who is firm and dependable with respect to delivering results b. Ke
mihalych1998 [28]

Answer:

The correct answer is letter "A": Joanna, who is firm and dependable with respect to delivering results.

Explanation:

Operational leaders are those who analyze the strengths and weaknesses of their group to allocate the duties in a way that produces the most efficient outcome. In front of problems, this type of leader studies the impact and what is going to be needed to solve it. Operational leaders are mostly <em>results-driven</em>.

3 0
3 years ago
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