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
atroni [7]
3 years ago
5

Suppose that in a month the price of movie rentals decreases from​ $3.25 to​ $3. At the same​ time, the quantity of movie rental

s demanded increases from 100 to 120. The price elasticity of demand for movie rentals​ (calculated using the midpoint​ formula) is:
a. elastic.
b. zero.
c. inelastic.
d. unitary elastic.

Business
1 answer:
Sergeeva-Olga [200]3 years ago
4 0

Answer:

The correct answer is option a.

Explanation:

The initial price of movie rentals is $3.25.

The initial quantity is 100.

The price falls to $3.

This causes demand to rise to 120.

The price elasticity of demand a ratio of change in quantity demanded to change in price level.

The elasticity is calculated at -2.25, through the process given in images.

The price elasticity of demand here is greater than 1 which means it is elastic.

So, option a is the correct answer.

You might be interested in
Concord Corporation produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct mat
mart [117]

Answer:

b. $85,000

Explanation:

First, we should prepare the analysis of cost savings if the company buys outside.

Analysis of cost and savings

Purchase (5,000 units × $68) = ($340,000)

Savings

Variable cost = $80,000

Fixed cost = $175,000

Net income effect

($85,000)

The effect is a decrease in net income by $85,000.

7 0
3 years ago
Discuss any 5 measures introduced by the government to fight poverty in south Africa​
Sergeeva-Olga [200]

Answer:

<h3>⭐Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.</h3>
5 0
3 years ago
Three sisters are interested in forming a business together. They have three initial concerns: How to maximize their benefits fr
blsea [12.9K]

Answer:

Limited liability company

Explanation:

A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.

It combines features of a corporation and a partnership or sole proprietorship.

This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.

Also the business will continue even if only one of the sisters remains.

So an LLC is the best option for them.

3 0
3 years ago
For which of the following categories of employees are performance improvement measures like withholding pay increases, demotion
Darina [25.2K]

Answer: C

Explanation: The deadwood employee is the one who habitually does the minimum amount to get by, often blaming others or the “system” when there are problems. They may have ‘retired on the job,’ or lost motivation to work, like spreading gossip and rumours somas not to put in the required energy to work or they are just generaaly lazy folks.

8 0
3 years ago
Read 2 more answers
Which of the following individuals are not subject to the net investment income tax?
Whitepunk [10]

Answer:

NRAs stands for Non- resident Aliens and who is single

Explanation:

NRAs stands for Non- resident Aliens are the one who are not subject to the Net Investment Income Tax. If NRA, is married to the citizen or the resident of U.S (United States) and has planning to make, an election in the section 6013 (g), which is to be treated or act toward as the resident alien for the motive of filing as the Married Filing Jointly.

The concluding regulations offer special rules to those couples and a correlate section for the NIIT (Net investment income tax).

Note: The options are missing, so providing the direct answer.

5 0
3 years ago
Other questions:
  • a mature manufacturing firm. The company just paid a dividend of $8.65, but management expects to reduce the payout by 5 percent
    13·1 answer
  • A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the fo
    5·1 answer
  • Starbucks ceo howard schultz has made sure his employees have health insurance and work in a positive environment. he could best
    8·1 answer
  • What is the nash equilibrium for this​ game?
    7·1 answer
  • When the price of bubble gum is $0.50, the quantity demanded is 400 packs per day. When the price falls to $0.40, the quantity d
    5·1 answer
  • Before purchasing a car, John sought advice from his friends and researched auto reviews on the Internet. He also visited car de
    9·1 answer
  • Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are
    11·1 answer
  • The balance sheet indicates what an organization owns or controls and the various sources of the funds used to pay for these ass
    8·1 answer
  • Samantha is a single mother raising two young children. In 2015, she was let go from her assembly line job at the car plant wher
    12·1 answer
  • Sorry, I withdraw my question.
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!