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
german
2 years ago
5

Label the following hypothetical demand scenarios. Use the midpoint method.

Business
1 answer:
nignag [31]2 years ago
4 0

Answer:

Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000.

UNIT ELASTIC ⇒ when the price elasticity of demand is unit elastic, a change in price will result in a proportionally equal change in the quantity demanded.

PED = % change in quantity / % change in price = {(15 - 20) / [(15 + 20)/2]} / {($4 - $3) / [($4 + $3)/2]} = -0.2857 / 0.2857 = -1 or |1| in absolute terms

Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.

INELASTIC DEMAND ⇒ when the price elasticity of demand is inelastic, a change in price will result in a proportionally lower change in the quantity demanded.

CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.

ELASTIC DEMAND ⇒ when the demand for a good is elastic, a change in price will result in a proportionally higher change in quantity demanded.

PED = % change in quantity / % change in price = {(61,000 - 70,000) / [(61,000 + 70,000)/2]} / {($2.21 - $2) / [($2.21 + $2)/2]} = -0.1374 / 0.1 = -1.374 or |1.374| in absolute terms

You might be interested in
The newest version of a product like Crutchfield headphones is likely to use _____, while the new version of Monster Energy is l
PolarNik [594]

The newest version of a product like Crutchfield headphones is likely to use price skimming, while the new version of Monster Energy is likely to use  penetration pricing

<h3>What is  price skimming?</h3>

Price skimming is a pricing strategy that a company can use when launching a new product or service.

Electronic products, such as the Apple iPhone, frequently use a price-cutting strategy during the initial launch period. Then, after competitors launch competing products, such as the Samsung Galaxy, the price of the product drops to maintain the product's competitive advantage.

The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. Skimming is commonly used when a product is new to the market (in its introduction or growth phase) and has few competitors.

To know more about  price skimming follow the link:

brainly.com/question/15371394

#SPJ4

3 0
1 year ago
Concord Corporation had the following transactions during 2022: 1. Issued $190000 of par value common stock for cash. 2. Recorde
sergejj [24]

Answer:

The net cash provided by financing activities -$157,600.

Explanation:

Net cash provided by financing activities refers to the difference between the total cash inflows and total cash outflows from the financing activities section of the cash flow staement.

The net cash provided by financing activities can be calculated by preparing a partial cash flow statement as follows:

Concord Corporation

Net Cash Flow Statement (Partial)

As at December 31, 2022

<u>Details                                                                     Amount    </u>

Par value common stock issued for cash             190,000

Dividend declared and paid in cash                      (15,200)

6-year note payable repaid                                <u>  (334,400)  </u>

Net cash provided by financing activities      <u>   (157,600)   </u>

Therefore, the net cash provided by financing activities -$157,600.

Alternatively, the net cash provided by financing activities can be calculated as follows:

Net cash provided by financing activities = Par value common stock issued for cash - Dividend declared and paid in cash - 6-year note payable repaid = $190,000 - $15,200 - $334,400 = -$157,600

7 0
2 years ago
The Oviedo Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the opera
Elza [17]

Answer:

Yes it should as the net present value at the firm WACC is positive $ 4,156.54

Explanation:

we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide

So we should check if the present value of the savings is greater or equal than the machine cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C $ 8,000

time 10 years

rate=WACC= 0.1

8000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\  

PV $49,156.5368  

Net present value:

inflow - cost

49,156.54 - 45,000 = 4,156.54

6 0
3 years ago
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $14 a
iren2701 [21]

Answer:

In the question, we are not given information with respect to sales costs, so we can only find total gross sales:

Sales Budget fist 2 quarters of the year

Product  Sales Price  Sales Q1 Sales Q2  Total gross sales

XQ-103     $14             22,590    27,710      $704,200

XQ-104     $27             14,880    16,200      $839,160

                                                                     $1,53,360

4 0
2 years ago
Depending on the style of the wedding gown dash– and the size of the bride dash– a wedding dress​ custom-designed and sewn in​ j
Step2247 [10]
<span>These would be the variable costs. Since the dress uses up to a specified amount of each of these elements, the costs can vary depending on the size of the gown and the person wearing the gown. Variable costs, unlike those that are fixed, are able to change based upon outside factors.</span>
5 0
3 years ago
Other questions:
  • You met Tevin on a social media website. He was a personable, effective communicator. While online, he asked for a donation to a
    6·1 answer
  • You are planning a graduation trip to Mexico. Other things the same, if the dollar appreciates relative to the peso, then
    5·1 answer
  • Which of the following accurately describes a shortage?
    14·1 answer
  • Robert has a list of characteristics that he wants his new house to have, and he has listed every item in that list in their ord
    8·1 answer
  • The Fabricating Department started the current month with a beginning Work in Process inventory of $10,500. During the month, it
    9·1 answer
  • You are writing an e-mail to a potential employer about a job opportunity. what can you do to make sure the e-mail reflects your
    6·1 answer
  • What is true about economic resources? A) Economic resources include only money. B) Economic resources are limited. C) Economic
    9·2 answers
  • "Consider the futures contract written on the S&amp;P 500 index and maturing in one year. The interest rate is 3%, and the futur
    8·1 answer
  • What is a bank teller?​
    14·1 answer
  • a construction manager just starting in private practice needs a van to carry crew and equipment. she can lease a used van for $
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!