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
LenaWriter [7]
4 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]4 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%

You might be interested in
What is the relationship between a​ monopolist's demand curve and the market demand​ curve? A. A​ monopolist's demand curve is g
Ber [7]

Answer:

B) a monopolist's demand curve is the same as the market demand curve

Explanation:

The demand curve is downward sloping for both monopolies and competitive markets. Rational consumers will always buy larger quantities of products or services when their prices are lower, and inversely will buy less when the price if higher. This applies to all types of markets except monopsonies (a lot of suppliers and only one consumer).

3 0
3 years ago
When comparing absorption costing and variable costing, if units produced are units sold, what is the effect on net operating in
11111nata11111 [884]

Answer:

The Net Operating income will be the same for both methods.

Explanation:

Net Operating income under absorption costing and variable costing methods usually differ because of existence of inventory.

Fixed overheads are deferred in Inventory when using absorption costing. Meaning that a higher income is obtained under absorption costing than variable costing when there is inventory and a lower income under absorption costing than variable costing.

When units produced are units sold, there is no inventory. Therefore, the Net Operating income will be the same for both methods.

8 0
3 years ago
Nicole has a contract to buy 14 cases of hammers from Tyler. Tyler breaches the contract. Even though she can get similar hammer
mario62 [17]

Answer:

B) No, because she can get similar hammers elsewhere.

Explanation:

When someone sues for specific performance he/she is asking the court to order the defendant to complete performance the contract. They are not suing to recover any damages that may have resulted from the breaching of the contract.

In this case, Nicole would have probably been able to sue Tyler for some type of compensatory damages, but since the hammers are such a common good, it would be very difficult for her to obtain an specific performance order.

4 0
3 years ago
Statistical software is considered a complement in the demand for economists. this means that if the demand for economists incre
dlinn [17]
Increase because the software will become more in demand from the more economists. 
7 0
3 years ago
Willow Golf Course is planning for the coming golfing season. Investors would like to earn a 15% return on the company's $58,000
Ira Lisetskai [31]

Answer:

The operating profit is $4,800,000

Explanation:

We know that,

The operating profit would equal to

= Sales - variable cost - fixed expenses

where,

Sales = Number of rounds of golf × selling price per unit

         = 600,000 rounds × $75

         = $45,000,000

Variable cost = = Number of rounds of golf × selling price per unit

                          = 600,000 rounds × $17

                          = $10,200,000

And, the fixed expenses is $30,000,000

Now put these values to the above formula  

So, the value would equal to

= $45,000,000 - $10,200,000 - $30,000,000

= $4,800,000

3 0
3 years ago
Other questions:
  • Sally, Greg, John, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The
    6·1 answer
  • A consumer values a car at $525,000 and a producer values the same car at $485,000. If the transaction is completed at $510,000,
    5·1 answer
  • Jill is starting a fast food delivery company. she has designed a logo and plans to print flyers to advertise her services. jill
    8·1 answer
  • Compare the strengths and weakness of the traditional fraud detection techniques with the machine learning techniques for fraud
    11·1 answer
  • A comparison between Operating Lease and Capital Lease Now assume that Company ABC leases an equipment for 5 years instead. Othe
    15·1 answer
  • Stephen is preparing his pitch for a bank representative that will be considering him for a business loan. He lists the resumes
    7·1 answer
  • There's a large number of bakeries in the United States and each of these bakeries produces similar, but not identical, products
    7·1 answer
  • You are in charge of your country's currency, which is backed by a gold standard. Unfortunately, gold production is dropping sha
    14·1 answer
  • Which of the following is an example of cause-related marketing?
    8·1 answer
  • Sources of economic growth would include an increase in:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!