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
3 years ago
11

The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increa

sed by 30 percent. What was the percentage change in price that brought this about
Business
1 answer:
salantis [7]3 years ago
7 0

Answer:

15%

Explanation:

The formula and the calculation of the price elasticity of supply are presented below:

Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)

where,

Price elasticity of supply = 2

And, the percentage change in quantity supplied is 30%

So, the percentage change in price is

= 30% ÷ 2

= 15%

You might be interested in
A shift in the demand curve for pretzels increases the price of pretzels from $1.25 to $1.75 and its quantity demanded from 30 m
Sever21 [200]
Initial price, P₀ = $1.25
Initial demand, Q₀ = 30 million

New price, P₁ = $1.75
New demand, Q₁ = 35 million

By definition, price elasticity is
\eta = \frac{(Q_{1}-Q_{0})/(Q_{1}+Q_{0})}{(P_{1}-P_{0})/(P_{1}+P_{0})}
η = (5/65)/(0.5/3)
   = 0.4615

Answer: η = 0.46 (nearest hundredth)

This means that greater demand makes it possible to increase the price. Usually, this is not the case because lowering the price increases sales.

6 0
3 years ago
Which environment is not an important dimension of a business organization's external environment?
timofeeve [1]

Answer: d. the corporate culture envrionment

Explanation:

5 0
3 years ago
Sweet Treats sells ice cream cones for​ $4.25 per customer. Variable costs are​ $1.25 per cone. Fixed costs are​ $3,300 per mont
ziro4ka [17]

Answer:

Company's contribution margin​ ratio is <u>70.59%</u>

3 0
3 years ago
What is the third primary decision when it comes to making financial decisions (along with spending and saving)?
Kaylis [27]
Setting your priorities could be a primary third desicion when it comes to making financial decisions.
8 0
3 years ago
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $2,000,000. Th
GenaCL600 [577]

Answer:

$2,740,251.24

Explanation:

Applying power sizing technique or an exponential model to determine the cost of new boiler.

This model identify the cost variation along with change in capacity or power of the equipment.

\frac{C_{A} }{C_{B} } =(\frac{S_{A}}{S_{B}})^{x}

Where,

Cb = Cost of new plant

Sa = capacity of new plant

Sb = capacity of old plant

x = cost capacity factor

Therefore,

\frac{C_{A}}{2,000,000} =(\frac{400,000}{250,000})^{0.67}

C_{A}=2,000,000\times\frac{400,000}{250,000}

               = 2,000,000 × 1.3701

               = $2,740,251.24

5 0
3 years ago
Other questions:
  • As the number of people holding college degrees increases, assuming the demand for college educated labor stays constant, the wa
    7·1 answer
  • Choose two occupations one that pays high wages and one that pays low wages. explain the reasons of the differences
    10·1 answer
  • the interest paid on bonds issued by the united states government is less than the interest on many other forms of investment. Y
    9·1 answer
  • . A business cycle is the a. period of time in which expansion and contraction of economic activity are equal. b. period of time
    6·1 answer
  • If a Starbucks tall latte cost $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the
    5·1 answer
  • According to an article in the Wall Street Journal​, in​ 2016, ​Moody's Investors Service has agreed to pay​ $130 million to end
    8·1 answer
  • If this game is played only once, then the most likely outcome is that a. both firms produce a good quality product. b. both fir
    13·1 answer
  • Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of th
    5·1 answer
  • Which best describes how advertising influences consumer choice in an oligopoly?
    5·1 answer
  • A person should consume more of something when its marginal.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!