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
Kay [80]
3 years ago
7

The price of notebooks is $5, and at that price consumers demand 12 notebooks. If the price rises to $7, consumers will decrease

quantity demanded to 4 notebooks. Using the midpoint formula, what is the price elasticity of demand for notebooks?
Business
1 answer:
Vitek1552 [10]3 years ago
7 0

Answer:

3

Explanation:

We are asked to use the midpoint formula.

Here, instead of dividing the change in values by the old value as in the normal elasticity calculation, we use the average of the two.

Mathematically:

Price elasticity of demand according to midpoint formula is :

{Q2 - Q1 / (Q2 + Q1) ÷ 2] × 100%} ÷ {[P2 - P1/ (P2 + P1) ÷ 2] × 100}

Price changed from 5 to 7. The midpoint of 5 and 7 is the average = (5+7)/2 = 6

% change in price in this case is (7-5)/6 * 100 = 100/3 = 33.33%

% change in quantity:

We first find the average = (12+4)/2 = 16/2 = 8

% change = (4-12)/8 * 100 = -100%

The elasticity of demand is thus -100/33.33 = 3

You might be interested in
The two main motives for travel are _______________. business and pleasure fun and games health and wellness relatives and polit
White raven [17]
Most likely business and pleasure.
5 0
3 years ago
Refers to the work processes associated with shortening the time of delivering a product or service
NARA [144]
The term that is being described above is EXPEDITING. From the term itself, expedite means to a process of making something happen sooner or immediately. When it comes to business, expediting is a term that refers to the management of purchases wherein the products are being delivered and arrived in a timely fashion while maintaining its quality.
7 0
3 years ago
Santa Fe Company was started on January 1, Year 1, when it acquired $9,000 cash by issuing common stock. During Year 1, the comp
Nitella [24]

Answer:

All of the options are false.

Explanation:

The net income is an element that increases the owners' equity while dividend paid reduces it. Both are elements of the cash flows for operating and financing activities respectively.

Considering the information given;

Acquired $9,000 cash by issuing common stock - This is an inflow of cash and forms the owner's equity balance at the start of the year.

During Year 1, the company earned cash revenues of $4,500, paid cash expenses of $3,750 - These are elements of the income statement and will result in a net income of $500 ($4,500 - $3,750 - $250).

and paid a cash dividend of $250 - This is a reduction in the owner's equity and is a cash outflow.

Now a review of all the options;

a. The 2016 statement of cash flows would show net cash inflow from operating activities of $2,450. - Net  cash flow from operating activities is $750 (($4,500 - $3,750). Hence this is false.

b. The 2016 income statement would show a net income of $1,300. - As shown in the consideration, this is false.

c. The 2016 statement of cash flows would show a net cash flow from financing activities of $9,700.  - Net cash flow from financing is

= $9000 - $250 = $8750

d. The December 31, 2016 balance sheet would show total equity of $15,750 - Total equity

=$9000 + $4,500 - $3,750 - $250 = $9,500

Hence all of the options are false.

7 0
3 years ago
Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
kicyunya [14]

Answer:

Total Manufacturing Costs is $95,680

Explanation:

                        Wyckam Manufacturing Inc.

              Planning Budget for Manufacturing costs

                       For the month Ended June 30

Direct Materials      (4,200 hours *$5.40)                    $22,680

Direct Labor                  Fixed                                        $42,400

Supplies                  (4,200 hours * $0.25 )                   $1,050

Utilities                   ($1,700+ 4,200 Hours * $0.25)      $2,750

Depreciation                  Fixed                                        $15,200

Insurance                       Fixed                                        $11,600

Total Manufacturing Costs                                         $95,680

7 0
3 years ago
Which is not a court of "first instance" (a court that looks at a case for the first time)? a municipal court a small claims cou
denis23 [38]

Answer:

Appellate court

Explanation:

Appellate courts hear and re-examine appeals from legal cases already heard and determined in a trial-level or other lower court.  They are popularly referred to as appeals court, the court of appeals, or second instance court.  

Appellate courts are present at both the federal and state levels. The primary purpose of the appellate court's is to ascertain whether or not the law was applied rightly in the lower court.

5 0
3 years ago
Other questions:
  • The human relations movement initially espoused a dairy farm view of management, meaning that contented cows give more milk, and
    9·1 answer
  • Having a good credit score is important because
    11·1 answer
  • In the​ 1950s, the economist Bela Balassa compared 28 manufacturing industries in the United States and Britain. In every one of
    12·1 answer
  • What is the amount of money you still owe to their credit card company called? ACredit Card Limit BCredit Card Balance CCredit C
    5·2 answers
  • How is going public a way to secure capital without going into debt? Name a company that has held an IPO.
    7·1 answer
  • How do i do thisssssssssssssss pls helpppppppppppppppppppp
    6·1 answer
  • A cosmetics company is planning the introduction and promotion of a new lipstick line. The marketing research department has fou
    12·1 answer
  • The idea that the money supply does not affect real economic variables is called:________
    11·1 answer
  • MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% serv
    7·1 answer
  • Direction: Arrange the following words.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!