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LenaWriter [7]
3 years ago
7

Ghose and Han​ (2014) found that the elasticity of demand for Google Play apps is negative 3.7. This elasticity applies to a sma

ll college town where approximately​ 1,000 apps per month are sold. If price rises by 8​%, what would be the effect on quantity​ demanded?
Business
1 answer:
IrinaK [193]3 years ago
5 0

Answer:

- 29.6%

Explanation:

Data provided in the question:

The elasticity of demand for Google Play apps = -3.7

Number of apps sold per month = 1,000

Percentage increase in the price = 8%

Now,

Elasticity of demand = [ % change in quantity ] ÷ [ %change in price ]

thus,

-3.7 =  [ % change in quantity ] ÷ 8%

or

% change in quantity  = -3.7 × 8%

or

% change in quantity  = - 29.6%

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Consider an economy with only two goods: bread and wine. In the base year, the typicalfamily bought 4 loaves of bread at $2 per
Inessa05 [86]

Answer:

The CPI for the given year is 123.

Explanation:

Consumer price index (CPI)

=\frac{\textrm{cost at given year}}{\textrm{cost at  base year}}

In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.

Cost at base year =$[(4×2)+(2×9)]

                             =$26

In a given year, bread cost $3 per loaf and wine cost $10 per bottle.

Cost at given year =$[(4×3)+(2×10)]

                              =$32

The CPI for the given year is

=\frac {32}{26}\times 100

≈123

4 0
3 years ago
Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea
Usimov [2.4K]

Answer:

$42

Explanation:

Data provided as per the requirement of contribution margin per hour of machine time is here below:-

Unit Contribution Margin = $21

Machine Time required by fancy lamp = 0.50 hours

The computation of contribution margin per hour of machine time is shown below:-

Contribution Margin Per Hour of machine time = Unit Contribution Margin ÷ Machine Time required by fancy lamp

= $21 ÷ 0.50 hours

= $42

Therefore for computing the contribution margin per hour of machine time we simply divide the unit contribution margin by machine time required by fancy lamb.

7 0
2 years ago
Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In​ May, Nexus anticipat
Mama L [17]

Answer:

$33,700 (Favorable)

Explanation:

Note: Figures are not inputted. The missing figures have been figured out as below.

"<em>Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead cost were $23000.  What was nexus fixed manufacturing overhead volume variance in May</em>?"

Solution:

Budgeted fixed overhead costs = Units * Direct labor cost * Standard Direct Labor hours per unit

= 2,700 units * $8.40 * 2.5

= 2,700 units * 21

= $56,700

Fixed manufacturing overhead volume variance = Actual fixed overhead cost - Budgeted fixed manufacturing overhead costs

When Actual fixed overhead = $23,000 ,  Budgeted fixed overhead costs = $56,700

Fixed manufacturing overhead volume variance = $23,000 - $56,700

= $33,700 (Favorable) .

8 0
3 years ago
In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a
Jlenok [28]

Answer:

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i

from the FPC we have that

a-b\sum_{i=1}^n q_i -m -b q_i=0

q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}

since all firms are homogeneous this means that q_i=q \forall i

then q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}

the industry output is then

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

7 0
2 years ago
The market interest rate related to a bond is also called the Group of answer choices stated interest rate effective interest ra
Naddika [18.5K]

Answer:

Effective Interest Rate

Explanation:

Effective Interest Rate

The market interest rate is the real return on the bonds, or any interest offering investment. It is otherwise known as the effective interest rate. Moreover, there is an inverse relationship between the market interest rate and the value of bonds that means an increase in the market interest rate will result in a decrease in the market values of bonds.

3 0
3 years ago
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