Answer:
B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Demand is elastic if a small percentage decrease in price produces a larger percentage increase in quantity demanded . Total revenue would increase because the percentage increase in Quanitity demanded exceeds the percentage decrease in price.
If demand is elastic, a small percentage increase in price produces a larger percentage decrease in quantity demanded and total revenue increases.
Here, total revenue falls because percentage decrease in price exceeds the percentage increase in price.
Demand is inelastic if a small percentage decrease in price produces a smaller percentage increasein quantity demanded.
Demand is perfectly inelastic if the quantity demanded remains the same regardless of level of price.
I hope my answer helps you
Answer:
$165,000
Explanation:
The computation of the annual net cash flow is shown below:
But before that first we have to find the depreciation expense which is
= (Initial cost - Salvage Value) ÷ estimated life
= ($400,000 - $75,000) ÷ 5 years
= $65,000
Now the annual net cash flow is
= Depreciation expense + Net Income
= $65,000 + $100,000
= $165,000
We simply added the depreciation expense and the net income so that the annual net cash flow could come
Answer:$722,000
Explanation:
The over applied overhead of $8000 is deducted from cost of goods sold of $730,000.
