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
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly,
Tema [17]

Answer:

A. 45

B.2,235

C. 1.9%

Explanation:

A. Calculation to determine the amount of value-added

VALUE ADDED TIME

PC board Assembly 4

Final Assembly 20

Testing 9

Packaging and labeling 12

Total Value added time 45

Therefore the amount of value-added is 45

B. Calculation to determine non-value-added lead time

NON-VALUE-ADDED LEAD TIME

Wait time for non added value 2,205

[45*(50-1)]

Add Test set up time 30

Wait time 2,235

Therefore The non-value-added lead time is 2,235

C. Calculation to determine the value-added ratio

Value added time 45

Non value added lead time:

Wait time lead time 2,235

Move time lead time 32

(12+20)

Total lead time 2,312

Value added ratio 1.9%

(45/2312*100)

Therefore the value-added ratio is 1.9%

6 0
2 years ago
Big Homes Corporation is an accrual method calendar year taxpayer that manufactures and sells modular homes. This year for the f
Nina [5.8K]

Answer:

What amount of the rebates, if any, can Big Homes deduct this year?

$19500

Explanation:

$19,500 if this amount is not material, Big Homes could  continue  offering rebates in next sells, in addition expects to pay the accrued rebates before filing their tax return for this year.

4 0
3 years ago
Here a rap what yall think its called disrespect
ahrayia [7]

Answer:

about ppl disrespecting you

7 0
2 years ago
Read 2 more answers
Is 6 ft greater than 72 inches
Rudik [331]
No, 6ft=72in. There the same.
3 0
3 years ago
Read 2 more answers
Which of the following is a regular outcome of being late to work
Grace [21]
A regular outcome could be a lot of hate from co-workers and your boss, and eventually you might be put on admin leave or fired.
6 0
3 years ago
Other questions:
  • A couple will retire in 50 years; they plan to spend about $26,000 a year in retirement, which should last about 25 years. They
    13·1 answer
  • Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo
    12·1 answer
  • Jill wants to save up for a down payment for her first home to be purchased 8 years from now. If she can earn 8% on her savings
    15·1 answer
  • Which of the following statements regarding direct finance is true​? A. In the United​ States, more funds flow through the direc
    6·1 answer
  • Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the mark
    5·1 answer
  • A company’s fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product’s sales price is $4.50. W
    14·1 answer
  • Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below.
    5·1 answer
  • DL variances
    12·1 answer
  • Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expect
    6·1 answer
  • Question 6
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!