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Musya8 [376]
3 years ago
9

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking

changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by (A) 30%.(B) 40%. (C) 80%. (D) 250%.(E) 5%.
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer:

(B) 40%

Explanation:

↓Q / ΔPrice = Price-elasicity

The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.

ΔPrice  = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1

We know that price elasticity is 0.4

Now we can solve for the change in the quantity demanded:

↓Q/ 1 = 0.4

↓Q = 0.4 x 1 = 0.40 = 40%

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George invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 16.35 percent in 2012, 31.50 percen
saul85 [17]

Answer:

$161.50

Explanation:

Amount Invested = $1,000

Number of years = 4

Return for each year = Amount Invested × Interest rate

                                  = $1,000 × Interest rate

For 2012:

Interest rate = 16.35% = 0.1635

Therefore,

Return for 2012 = $1,000 × 0.1635

                          = $163.50  

For 2013:

Interest rate = 31.50% = 0.3150

Therefore,

Return for 2013 = $1,000 × 0.3150

                          = $315.00  

For 2014:

Interest rate = 13.85% = 0.1385

Therefore,

Return for 2014 = $1,000 × 0.1385

                          = $138.50  

For 2015:

Interest rate = 2.90% = 0.029

Therefore,

Return for 2015 = $1,000 × 0.029

                          = $29.00  

Average for 2012-2015

To get this, we add the returns for the 4 years, i.e. 2012-2015, and then divide it by the number of years which 4 as follows:

Average for 2012-2015 = ($163.50  + $315.00 + $138.50 + $29.00) ÷ 4

                                       = $646.00  ÷ 4

                                       = $161.50

Therefore, George's average return for the period is $161.50.

I wish you all the best.

3 0
3 years ago
Among game birds popular with American consumers, _______ is by far the most commonly consumed. 
nevsk [136]
I believe most consumed bird is a quail.
D
Hope his helped:)
3 0
3 years ago
Read 2 more answers
Dominic is a customer of Apexoria Credit Union she has $22,978 in a checking account and $2,000 in Saving how much of Dominique'
Nikitich [7]
The Answer is D.$0 Good Luck
8 0
3 years ago
When using _____, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer.
riadik2000 [5.3K]

Answer:

freight absorption pricing

Explanation:

Freight Absorption Pricing. a pricing method in which the manufacturer bears some or all of the freight costs involved in transporting the goods to the customer.

8 0
3 years ago
Read 2 more answers
A company had the following purchases during its first year of operations:
Readme [11.4K]

Answer:

Ending inventory value= $9,127

Explanation:

Giving the following information:

January: 17 units at $127

February: 27 units at $137

May: 22 units at $147

September: 19 units at $157

November: 17 units at $167

<u>Using the specific identification method, we need to multiply each unit for its specific cost.</u>

<u></u>

Ending inventory:

January= 9*127= 1,143

February= 11*137= 1,507

May= 13*147= 1,911

September= 11*157= 1,727

November= 17*167= 2,839

Ending inventory value= $9,127

5 0
3 years ago
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