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Ad libitum [116K]
3 years ago
12

When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags.

The price elasticity of demand over this price range is equal to ------
Business
1 answer:
bagirrra123 [75]3 years ago
7 0

Answer:

0.37, the demand is inelastic.

Explanation:

% change in price = $6- $2 = ($2 / $6) * 100 = 33%

% change in demanda =  800 - 700 = (100/800) * 100 = 12.5%

PED = 12.5 / 33 = 0.37.

The formula to calculate the PED is %change in demand / %change in price, and if we apply the formula according to the information provided, we found that the PED is 0.37. If the PED is between 0 and 1, we can conclude that we have an inelastic demand.

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If a company wanted to finance the purchase of equipment without diluting shareholders equity, which of the following operation
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Answer:

Issuing convertible bonds

Explanation:

Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.

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2 years ago
Which of the following jobs is considered a trade?
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Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If
Norma-Jean [14]

Answer:

a. $3,520.

Explanation:

The computation of the amount of maintenance cost allocated to the Cutting Department is given below:

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The 6,250 comes from

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8 0
3 years ago
Which of the following terms refers to a promise made to lenders by a borrower?
Natali5045456 [20]

Answer:

Covenant.

Explanation:

A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.

4 0
3 years ago
Frankâ Pianki, the manager of an organic yogurt processing plant desires a quality specification with a mean of 18.0 âounces, an
aleksley [76]

Answer: 0.050

Explanation:

Mean = 18

USL = 18.6

LSL = 17.4

SD = 1.25

Cpk = Min{(mean - LSL / 3*sd), (USL - mean / 3*sd)}

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= Min { 0.05 0.05)

Cpk = 0.050

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