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Fittoniya [83]
2 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]2 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

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Answer: Strategic Analysis.

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3 years ago
If the price elasticity of demand coefficient is 4, then:a. a price increase of 1% will reduce quantity demanded by 1/4%b. A pri
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Answer:

A price increase of 1% will reduce quantity demanded by 4%

Explanation:

If the price elasticity is 4 then, this demand is highly responsive to changes in price.

So it will decrease by more than the price increase.

we must remember that the price-elasticity is determinate  like:

↓QD / ΔP   = price-elasticity

if the cofficient is 4 then a 1% increase in price:

↓QD / 0.01 = 4

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3 years ago
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Are opinion would not matter and the country would not be free.
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3 years ago
Fabiola is an accountant with Rovers and Associates, a law firm in downtown Memphis. The firm maintains a checking account with
Lelu [443]

Answer:

C) Drawer

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Assume Dell's yearly inventory cost is 30 percent to account for the cost of capital for financing the inventory, the warehouse
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Answer:

See below

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1. Value of inventory sold

= $280 million in inventory + COGS $23,100 million

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