Which of te following correctly pairs a financing option with its description

The price of a large pizza decreased from $18.00 to $14.00. As a result, the quantity demanded of skateboards increased from 330

natta225 [31]

Answer:

a. The percentage change in pizza prices is -25.00%.

b. The percentage change in pizza prices is 5.88%.

c. The cross elasticity of demand for pizza and skateboards is -23.53%.

We follow these steps to arrive at the answer.

<h3>a. Percentage change in price of pizza</h3>

The percentage change in price of pizza using the midpoint formula is:

$percentage change in price = ({\frac{P_{2} - P_{1}}{Average price})*100$

$Average Price = \frac{P_{2} + P_{1}}{2}$

In this question, P₁ is $18 and P₂ is $14

Substituting the values in the formula above we get,

$Average Price = \frac{14 + 18}{2}$

$Average Price = \frac{32}{2}$

$Average Price = 16$

$percentage change in price = (\frac{14 - 18}{16})* 100$

$percentage change in price = (\frac{-4}{16}) * 100$

$percentage change in price = -25$ %

<h3>b. Percentage change in quantity demanded of skateboards</h3>

The percentage change in quantity of skateboards using the midpoint formula is:

$percentage change in quantity = (\frac{Q_{2} - Q_{1}}{Average Quantity})*100$

In this question, Q₁ is 330 and Q₂ is 350

Substituting the values in the formula above we get,

$Average quantity = \frac{Q_{2} + Q_{1}}{2}$

$Average quantity = \frac{350 + 330}{2}$

$Average quantity = 340$

$percentage change in quantity = (\frac{350 - 330}{340})*100$

$percentage change in quantity = (\frac{20}{340})*100$

$percentage change in quantity = 5.8823529$ %

<h3>c. Cross Elasticity of demand of skateboards and pizza</h3>

We calculate the cross elasticity of demand as follows:

$Cross Elasticity Demand = \frac{percentage change in quantity of skateboards}{percentage change in price of pizza}$

$Cross Elasticity Demand = \frac{0.058823529}{-0.25}$

$Cross Elasticity Demand = -0.235294118$

$Cross Elasticity Demand = -23.53$ %

7 0

3 years ago

Suppose the price of gasoline in July 2004 averaged $1.35 a gallon and 15 million gallons a day were sold. In October 2004, the

Alenkinab [10]

Answer:

0.15

Inelastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 14 million - 15 million = -1 million

average of both demands = (14 million + 15 million ) / 2 = 14.50 million

Midpoint change in quantity demanded = -1 million / 14.50 million = -0.069

midpoint change in price = change in price / average of both price

change in price = $2.15 - $1.35 = $0.80

average of both prices = ( $2.15 + $1.35 ) / 2 = $1.75

midpoint change in price = $0.80 / $1.75 = 0.457

-0.069 / 0.457 = 0.15 demand is inelastic

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

6 0

3 years ago

Category specialists are also called category ______ because of their ability to offer a complete assortment in a category at so

Mademuasel [1]

Answer:

are also called Category Killers

Explanation:

Category killers are retailers that diligently executes deep product assessment within a given category through selection, pricing, and market penetration.

8 0

3 years ago

Argo, a firm organizing adventure travel, has returns that vary with the economy. Argo predicts that there is a 20% probability

nexus9112 [7]

Answer: 8%

Explanation:

The expected return is a weighted average of the returns given the probability of certain states of the economy:

= (Prob. of boom * return if boom) + (Prob. of normal * return if normal) + (Prob. of weak * return if weak)

= (20% * 35%) + (50% * 14%) + (30% * -20%)

= 0.07 + 0.07 - 0.06

= 8%

5 0

2 years ago

Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His frien

Bad White [126]

Answer: (A) Vision

Explanation:

According to the given scenario, the Xavi is basically demonstrating about the vision about their new startup EnerMob Inc., company in which he planning to promote the concept of cell phone batteries which is typically charged by the solar panel.

Xavi is basically developed the proper vision of his company so that it helps in achieving his main objective for selling the new cell phone batteries products in the market and by using the promoting strategy we influence the customers.

The vision is the term which is used to define the main objective and goal of an organization so that by proper planning we can easily achieve the desirable goals.

Therefore, Option (A) is correct answer.

5 0

3 years ago