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
Fittoniya [83]
3 years ago
7

Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decre

ases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula, also known as the simple elasticity formula) is:_______A 0.6. B. 0.75. C. 025. D. 20.
Business
1 answer:
Arte-miy333 [17]3 years ago
3 0

Answer:

Option A is correct

Price elasticity of demand =0.6

Explanation:

<em>Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.  </em>

<em>Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic  </em>

PED is computed as follows:  

PED = % change in quantity /% change in Price

% change in demand = (100-80)/100 × 100 = 20%  

% change in price =(0.75-1)/0.75 × 100 = 33.33%

PED = 20%/33.33% = 0.600

Price elasticity of demand =0.6

You might be interested in
Economics can be described as the study of how people use ________ resources to satisfy ________ wants.A) unlimited; unlimitedB)
Masteriza [31]

Answer:

C) limited; unlimited

Explanation:

Economics can be described as the study of how people use limited resources to satisfy unlimited wants.

5 0
3 years ago
8. The TS Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 10,000 12,0
Finger [1]

Answer:

Results are below.

Explanation:

<u>First, we need to determine the production budget using the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Quarter 1:

Production= 10,000 + (0.25*12,000) - 2,500

Production= 10,500

Quarter 2:

Production= 12,000 + (0.25*14,000) - 3,000

Production= 12,500

Quarter 3:

Production= 14,000 + (0.25*16,000) - 3,500

Production= 14,500

Quarter 4:

Production= 16,000 - 4,000

Production= 12,000

<u>Now, the direct material purchase budget:</u>

Purchases= production + desired ending inventory - beginning inventory

Quarter 1:

Purchase= 10,500*4 + (12,500*0.1) - 4,200

Purchase= 39,050 pounds

Quarter 2:

Purchase= 12,500*4 + (14,500*0.1) - 1,250

Purchase= 50,200 pounds

Quarter 3:

Purchase= 14,500*4 + (12,000*0.1) - 1,450

Purchase= 57,750 pounds

Quarter 4:

Purchase= 12,000*4 - 1,200

Purchase= 46,800 pounds

3 0
2 years ago
If marginal cost is greater than average cost, then
Alex777 [14]
Answer (Marginal costs)

The answer is marginal costs because they are the highest in the margin.

Hope this helps have a nice day :)
8 0
2 years ago
BR Company has a contribution margin of 9%. Sales are $477,000, net operating income is $42,930, and average operating assets ar
ser-zykov [4K]

Answer:

32.03%

Explanation:

Data provided as per the question

Net operating income = $42,930

Average operating assets = $134,000

The computation of  return on investment (ROI) is shown below:-

Return on investment =net operating income ÷ average operating assets

$42,930 ÷ $134,000

= 32.03%

Therefore for computing the return on investment we simply divide average operating assets by net operating income.

5 0
3 years ago
Read 2 more answers
Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investme
olganol [36]

Answer:

a. purchases of capital goods, all new residental constructionand inventory investment

Explanation:

It is the investment measure used for determining the GDP. It is an important part of GDP as it is used as an indicator for the productive capacity i.e. future. It involves the purchase i.e. replacement, net addition made to the capital assets, and the investment made in inventories

So according to this, the option a is considered as it involved all three thins that are shown above

5 0
3 years ago
Other questions:
  • Which of the following activities is not part of preparing for a job interview?
    10·1 answer
  • In business, a message written to right a wrong is called a claim. Straightforward claims are those where the receiver is expect
    9·1 answer
  • When kinko's replenishes its supply of copy paper, it most likely involves a _____ situation?
    8·1 answer
  • Scarcity: Group of answer choices
    8·1 answer
  • Assess how the leadership team you designate will affect organizational performance in the short-term and the long-term.
    8·1 answer
  • The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
    6·1 answer
  • What are some possible explanations for why these loans are popular despite the fact that they create a cycle of debt for many b
    14·2 answers
  • If there is a high demand for a product, then production will be__.
    9·2 answers
  • The time required to chance a machine from making one product or service to the next is called:______.
    15·1 answer
  • Management: Who manages the company? : Is the manager(s) actively involved in the decisions of the business at Woolworths? : Wil
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!