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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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<h3>What is trial balance?</h3>

A trial balance can be regarded as  bookkeeping worksheet which contains the ledger that is arranged into  debit and credit account column .

Therefore, with trial balance, one can check whether the debit side is equal to the credit side.

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2 years ago
Brazil is one of the world’s lowest-cost producers of ethanol and soybeans. Japanese corporations have heavily invested in Bra
guapka [62]

Answer: The Japanese companies invest in Brazil in order to cut cost.

Explanation:

Since Brazil is one of the world's lowest-cost producers of ethanol and soybeans. Japanese corporations investing heavily in Brazil to lease large tracts of land to grow soybeans for export to Japan, are doing this in order to minimize their cost.

Growing soyabeans in Brazil is cheaper since there's a lower cost of producing it when compared to the higher cost of producing it in Japan. This in turn, helps the Japanese companies reduce their cost as the cost of factor Input is reduced and also the Japanese companies can make more profit.

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3 years ago
What type of PMO do you think would be the best type to start with if your organization does not have a PMO
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Answer: Controlling PMO

Explanation:

Controlling PMO works as an auditor for the company, tis check the organization tools, processes and ensures if standard are applied in projects. They are known by their level at which they control projects, they manage the project activities and budget. Actions are taken into place when measures are not met in the processes, tools and standard.

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Explanation:

Detailed steps are given below

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When economists talk about supply, they are referring to a relationship between price received for each unit sold and the ______
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Supply refers to a relationship between price received for each unit sold and the quantity supplied.

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Supply refers to the relationship between the price of an item and the quantity supplied. The relationship between price and the quantity supplied is positive. This is in line with the law of supply.

The law of supply states that when prices increase, the quantity supplied increases and when price falls, the quantity supplied falls.

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