Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A
Explanation:
The following can be deduced form the question:
P1 = $50
P2 = $70
Q1 = 500 units
Q2 = 400 units
Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100
Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100
% change in quantity = (400 - 500)/(400 + 500)/2 × 100
= -100/450 × 100
= -22.22%
% change on price = (70 - 50)/(70 + 50)/2 × 100
= 20/60 × 100
= 33
Price elasticity of demand = % change in quantity / % change on price
= -22.22 / 33
= -0.67
This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.
Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A
Answer:
b. $2,000
Explanation:
The computation of the interest amount is shown below:
= Sale value of goods × rate of interest × (number of months ÷ total number of months in a year)
= $40,000 × 10% × (6 months ÷ 12 months)
= $2,000
The 6 months is calculated from June 30 to December 31.
So, the b option is correct and rest options are wrong.
Project Sponsor, Most project sponsors have many interested parties or stakeholders, but someone must take the primary role of sponsorship.
Answer:
The correct answer is letter "A": direct-marketing.
Explanation:
Direct-marketing is a type of advertising that implies transmitting information about a product, service or entity directly to customers. Most of the time the promotional information is prompted without intermediaries but some times marketing agencies are hired for that specific purpose.
