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
stich3 [128]
3 years ago
8

Suppose you know that the price elasticity of demand for your product is 0.5, and you are thinking about raising your price by 8

%. How much can you expect quantity to decrease?a. 8%b. 5%c. 4%d. We can't tell how much quantity will decrease
Business
1 answer:
satela [25.4K]3 years ago
4 0

Answer: Option (c) is correct.

Explanation:

Given that,

Price elasticity of demand = 0.5

Percentage increase in price = 8%

Price elasticity of demand = \frac{Percentage\ change\ in\ quantity\ demanded}{Percentage\ change\ in\ price}

0.5 =  \frac{Percentage\ change\ in\ quantity\ demanded}{8}

Percentage change in quantity demanded = 0.5 × 8

                                                                       = 4%

Therefore, if the price rises by 8% then as a result quantity demanded decreases by 4%.

You might be interested in
Inheriting someone else’s _______ is one of the drawbacks of buying an existing business.
vaieri [72.5K]

Answer:

problems

before

franchise

idea

Any two of these:

Make time to meet with clients instead of talking on the phone.

Join a business networking group.

Take business colleagues or prospects out to lunch at least once a week.

Teach a workshop in your field at the community college.

Any two of these

Freedom

Creativity

Profit

Explanation:

pf

3 0
3 years ago
Benefits of setting objectives for a company
In-s [12.5K]

Answer:

Help them evaluate the business' growth

Explanation:

When they set objectives, they can look at it later on and check if they had reached their goal. So they can see how far they've reached as a business.

8 0
2 years ago
If marginal cost becomes higher than price, what happens to a company
juin [17]
Increase price value profit becomes higher than price, what happens to a company
5 0
3 years ago
Why do we use a plug key in the circuit?<br>​
madam [21]

Answer:

we use a plug key in the circuit because to avoid from the electric shock ...

6 0
2 years ago
Giant inc. is thinking about eliminating one of its unprofitable product lines. when conducting incremental analysis related to
AlexFokin [52]
When conducting incremental analysis related to the decision if it should eliminate one of its unprofitable product lines, Giant should assume a percentage of fixed costs associated with the discontinued product line will remain, where fixed costs <span>are the costs </span><span>that have to be paid by a company, independent of any business activity. They are not variable.</span>
5 0
2 years ago
Other questions:
  • Saphire Company budgeted the following production in units for the second quarter of the year:
    9·1 answer
  • On may 10, the ceo of massmachine announced a quarterly dividend of $.50 per share to be paid on june 25 to all stockholders on
    6·1 answer
  • Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
    6·1 answer
  • How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends incre
    11·1 answer
  • determine if the data is biased or not, every fortieth student who enters the school is asked to name their favorite sport​
    11·1 answer
  • What is behavioral tracking?
    7·1 answer
  • Eagle Corporation solicited bids for various parts it uses in the manufacture of jet engines. Eagle received six offers and sele
    11·1 answer
  • When an organization has employees of different backgrounds and skill sets, it has greater and will be better than monocultural
    9·1 answer
  • Please help me asap. Will give brainliest answer too.
    5·1 answer
  • Ework Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market typ
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!