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BigorU [14]
3 years ago
10

Dan sells newspapers. Dan says that a 8 percent increase in the price of a newspaper will decrease the quantity of newspapers de

manded by 4 percent. According to Dan, the demand for newspapers is ________.
Business
1 answer:
ivann1987 [24]3 years ago
4 0

Answer:

For Dan, the demand is price inelastic

Explanation:

One of the factors tat affect the quantity demand for a product is the price of the product. According to the law of demand, at lower price more quantity of a product would be purchased than at a higer price, all other this being being equal.

Price elasticity of Demand (PED)

The extent to which a change in price will cause a change in the quantity demand for a product is called the price elasticity of demand. It measures the degree of responsiveness of quantity demand to a change in price.

It is calculated as

PED =% change in quantity demand / % change in price.

For Dan Newspaper , the price elasticity of demand

             = 4%/8%

            = 0.5

If the PED is greater than 1, the demand is price elastic

If the PED is less than 1 , demand is price inelastic

For Dan, the demand is price inelastic

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Novosadov [1.4K]

Answer:

10 days

Explanation: hope this helps I thank this is it

7 0
3 years ago
The term "benchmarking" as it relates to the hotel industry refers to a line-by-line analysis of an operating statement, compari
valentinak56 [21]

Answer:

The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.

Explanation:

a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor.  The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices.  A retail shop's metrics can be compared with the leading retail shop in your area.  Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.

There are four types of benchmarking, including internal, competitor, functional, and generic.  Internal benchmarking is limited to internal processes.  Competitor benchmarking compares one company's processes, products, or services to another.  Functional benchmarking compares one function of an entity to another entity's.  While generic benchmarking compares unrelated companies' processes or functions.

7 0
4 years ago
What does w.o mean on architectural plans?
kvasek [131]
Wall Oven or Water Outlet
7 0
4 years ago
Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red
Elanso [62]

Answer:

$61.29

Explanation:

Calculation for what Storico Co. Share of stock will sell today.

Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.

Therefore the price in Year 3 will be calculated as :

P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)

P3= $5.020785/0.07

P3=$71.72

Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:

Hence,

P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³

P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928

P0=$3.375+3.465+3.4035+$51.048

P0= $61.29

Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29

8 0
3 years ago
The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the compan
nataly862011 [7]

Answer:

This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has high scalability.

Explanation:

In an economic context, a scalable business model implies that a company can increase sales given increased resources.

7 0
4 years ago
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