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Arlecino [84]
3 years ago
6

How is the price elasticity of demand​ measured? A. by multiplying the percentage change in the​ product's price by the percenta

ge change in the quantity demanded of a product B. by dividing the percentage change in the​ product's price by the percentage change in the quantity demanded of a product C. by dividing the percentage change in the quantity demanded of a product by the percentage change in the​ product's price D. Any of these methods can be used in measuring the price elasticity of demand.
Business
2 answers:
Lapatulllka [165]3 years ago
8 0

Answer:

How is the price elasticity of demand​ measured?

c. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price

Explanation:

Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.

Korolek [52]3 years ago
6 0

Answer:

C. by dividing the percentage change in the quantity demanded of a product by the percentage change in the​ product's price

Explanation:

Elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes. To calculate the price elasticity of demand, a formula is used that divides the observed change in quantity (▲Q) by the change in price (▲P). Elasticity = ▲ Q / ▲ P. If the result is greater than 1, in module, we say that demand is elastic (price sensitive). If the result is less than 1, in module, we say that demand is inelastic (not sensitive to price changes).

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Answer:

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3 years ago
Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.
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6 0
2 years ago
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.5 percent and a standard devi
mario62 [17]

Answer: Step 1) Find share of market in the Portfolio

(11.5-3.5)x+3.5=6.5

8x=3

x=3/8

x=0.375

=37.5%

SD of market portfolio= 0.375x+0=9.5

x=9.5/0.375

=25.33%

correl = cov / (std 1 * std2)

0.4=COV/0.2533*0.545

COV= 0.2533*0.545*0.4=0.05

cov of 2 assets = b1 * b2 * variance of market

0.05=B1*1*0.2533^2

B of security=0.0032

Capm Model

3.5+0.0032(11.5-3.5)=3.5256% expected return

Explanation:

Step 1) Find the share of market in the portfolio in order to find market SD

Step 2)  Find Covariance betweens security and market by using both SDS and correlation

Step 3) Find Beta of Security using Co variance

Step 4) Use the Beta in CAPM model in order to find expected return

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3 years ago
Read 2 more answers
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