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
larisa86 [58]
3 years ago
15

Sandy's Sandwich Sitdown priced its lunch treats at ​$2.00​, they sold 250 per day. When the price was ​$3.00​, they sold 200 pe

r day. Based on this information and using the​ average-values formula, the absolute value of the price elasticity of demand for lunch treats is:
Business
2 answers:
kifflom [539]3 years ago
4 0

Answer:

0.56 (approx)

Explanation:

Given:

PRICE (P1) = $2

QUANTITY (Q1) = 250

PRICE (P2) = $3

QUANTITY (Q2) = 200

Calculation:

Average value method

Price elasticity of Demand = [Q2-Q1]/[(Q2+Q1)/2] / [P2-P1]/[(P2+P1)/2]

= [200-250]/[(200+250)/2] / [3-2]/[(3+2)/2]

= (-50)/(450/2) / (-1)/(5/2)

= (-50)/225 / (-1)/(2.5)

= -0.22222 / -0.4

= 0.555555

= 0.56 (approx)

alukav5142 [94]3 years ago
3 0

Answer:

-0.56

Explanation:

The computation of the price elasticity of demand using the​ average-values formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)

where,

Change in quantity demanded is

= Q2 - Q1

= 200 - 250

= -50

And,  an average of quantity demanded is

= (200 + 250) ÷ 2

= 225

Change in price is

= P2 - P1

= $3 - $2

= 1

And, the average of price is

= ($3 + $2) ÷ 2

= $2.5

So, after solving this, the price of elasticity is -0.56

You might be interested in
The main trait of a single-period model is that: ___________
Alja [10]

Answer:

d. inventory has limited value after a certain period of time.

Explanation:

Under the single period model, the companies ordered bulk quantities at a one time when there is a seasoned demand also the taste and the preference of the consumers varies from time to time

Therefore in the given option, the option d is correct as it remains with the limited value after the specific period of time

So, the other options are wrong

5 0
3 years ago
Jeff deposits 10 into a fund today and 20 fifteen years later. interest is credited at a nominal discount rate of d compounded q
Tanya [424]
<span>The following series of payments has present value zero: Contributions 10 20 100 ___________ ________ Time (in years) 0 15 30 The present value at time 10 of the payments at time 15 and at time 30 is â’20(1.03) to the power -10 + 100(1.03) to the power -40 = â’14.8818 + 30.6557 = 15.7738 This equals the present value at time 10 of the initial deposit, i.e. 10(1â’d/4) to the power -40 = 15.7738 So, d = 4.5318%</span>
3 0
3 years ago
A nonprofit cooperative that accepts deposits, makes loans, and provides other financial services
galben [10]
The term that is being described above is what we call the CREDIT UNION. This is a nonprofit cooperative wherein members are allowed to make deposits, and with these pooled deposits, the members can borrow money with minimal interest rates. Hope this answers your question.
6 0
3 years ago
The bank received and accepted a payment worth $7,200 from a customer on the company’s behalf. Which journal entry adjustment sh
krok68 [10]

Answer:

C. Accounts receivable will be credited by $7,200

Explanation:

Accounts receivable are expected payments from customers. They exist because businesses sell goods and services to customers on credit. Account receivables are asset accounts. An increase in assets accounts is debited, and a decrease is credited.

If the banks received payment from a customer, it means a customer has paid for goods sold on credit. Accounts receivable have decreased ( to be credited), but cash in the bank has increased.

5 0
3 years ago
Consumers will pay the full tax that is placed on the sellers of a good if demand is __________ or supply is __________.
Goryan [66]

Answer:

Perfectly inelastic, Perfectly elastic

Explanation:

Consumers will pay the full tax that is placed on the sellers of a good if demand is <u>Perfectly inelastic</u> or supply is <u>Perfectly elastic.</u> The reason for this is that the complete tax burden is borne by a perfectly inelastic side and no tax burden falls on the perfectly elastic side of a transaction.

8 0
3 years ago
Other questions:
  • Thyme, Inc. owns 16,000 of Sage Co.'s 20,000 outstanding common shares. The carrying value of Sage's equity is $500,000. Sage su
    13·1 answer
  • Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be
    14·1 answer
  • Goal displacement, satisficing, and groupthink are ____. disadvantages of individual decision making a normal aspect of all grou
    9·1 answer
  • The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:
    9·2 answers
  • Equivalent units of production are: 1. Work performed during the period. 2. Sales generated during the period. 3. Units of work-
    12·1 answer
  • Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving the
    10·1 answer
  • Speculator paid $25,000 net each for two 150 front-foot lots. Speculator split them into 3 lots with equal front footage. Specul
    11·1 answer
  • Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally,
    5·1 answer
  • Problems and Applications Q8 Suppose subway ridership in New York City declined by 4.3 percent after a fare increase of 25 cents
    10·1 answer
  • 3. Hayden Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!