Answer:
The government policy should have reduced beer consumption by 0.6 or 60%
Explanation:
Mid point formula calculates the ratio of mid point of change in demand and change in price to their average value. Then these changes are used in the calculations of elasticity of demand.
According to given data:
Elasticity of demand = 0.9
Midpoint of price = (20-10) / [(20+10)/2] = 10 / 15 = 0.6667
Elasticity of Demand = Midpoint of demand / Midpoint of price
0.9 = Midpoint of demand / 0.6667
Midpoint of price = 0.9 x 0.6667 = 0.6
Change in demand is should reduce the consumption by 0.6 or 60%.
Answer:
Prescriptive analytics
Explanation:
Prescriptive Analytics refers to the data analytics field that specializes on determining the best approach in a situation, based on the data accessible. It is linked towards both descriptive analytics as well as predictive analytics yet highlights valuable insights rather than data analysis.
Prescriptive analytics collects information with its systems from either a range of descriptive or predictive databases and relates it to the choice-making process. It involves mixing existing conditions with alternative actions to evaluate how well the outcome would be influenced by each.
It can also assess the effects of judgment, based on various potential future situations. The discipline draws inspiration from applied mathematics, using a number of statistical techniques to construct and re-create potential judgment trends that could have different effects on an entity.
Answer:
By using the EOQ model, ray should order 22.8 units or 23 units each time
Explanation:
Solution
Recall that:
Ray annual estimated demand for this model is = 1,050 units
The cost of one unit carry is =$105
He estimated each order costs to place = $26
Now,
The EOQ model= (2*annual demand*ordering cost/holding cost per unit per year)^.5
Thus,
EOQ = (2*1050*26/105)^.5
EOQ = 22.8 units or 23 units
Answer:
B. Both I and II are true.
Explanation:
<em> The average total cost of a given level of output is the slope of the line from the origin to the total cost curve at that level of output</em>
The average total cost is defined as the sum of all total costs divided by the quantity produced. In other words, the cost of one unit of production. The average cost curve as shown in the diagram is U-shaped, where it falls with economies of scale and later rises as diseconomies of scale sets in.
<em />
<em>The marginal cost of a given level of output is the slope of the line that is tangent to the total cost curve at that level of output</em>
Marginal cost is the change that occurs in the total cost when quantity produced increases by one unit. In other words, it is the cost of producing an additional unit of a good. As per the diagram, the slope of the line tangent to the TC (TC = AC x Q1) curve at Q1 is the firm's marginal cost at this output level.
Answer:A) one year
Explanation: The unbiased expectations theory, also known as the expectation theory aims to estimate how much the short term interest rates will amount to in future. This is based on long term interest rates. Forward rates are used to predict the value of interests in the future based on the values calculated today. A maturity of 1 year has the lowest interest rate because it is not given enough time to grow. Interest rates tend to grow better over a longer period of time. Therefore in terms of expectation theory the longer the maturity the better the chances of interest rate growth.
