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Alex777 [14]
3 years ago
9

Complete the following sentence. Given that total revenue = price x quantity, a reduction in price will lead to an increase in t

otal revenue when demand is
a.unit elastic
b.inelastic
c.elastic
Business
2 answers:
zzz [600]3 years ago
5 0

Answer:

elastic

Explanation:

ycow [4]3 years ago
3 0
Elastic.
This is the formula for elasticity:
Elasticity = (Quantity variation/Quantity)/(Price variation/Price)
Inelastic demand is the one in which a variation in price doesn’t lead to an important variation in the quantity bought by consumers. So, in the formula, numerator is much smaller than denominator, so the fraction is lower than 1. That happens with necessary goods (typically, food).
On the contrary, elastic demand is the one in which a variation in the price leads to an important variation in the quantity bought by consumers, and that means the fraction is higher than 1. So if I sell the product at a lower price, I will sell much more product.
Considering the formula: R = P*Q, when demand is elastic, I will have much more sold quantity with just a little lower price, which leads to a higher revenue.
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Michael dell warned companies to be careful about the way they interpret data from the​ ________. the sales numbers might reflec
KIM [24]

Michael dell warned companies to be careful about the way they interpret data from the​<u> "sales-information system".</u>



The sales information makes minimized and extensive data accessible, both to the administration and the business representatives.  

This information on various rundown levels empowers the acknowledgment of changes in the market forms. They frame the reason for untimely and orderly key and agent choices. The client can discharge the data with a less consumption. All things considered, the data framework has the adaptability essential, to meet individual prerequisites in various deals and marketing organizations.

6 0
3 years ago
A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume
Alinara [238K]

Answer:

Marginal Revenue Product=150

Marginal Resource Cost= 100

Explanation:

Marginal revenue product (MRP) is the change in total revenue that results from a unit change of some type of variable input.

Marginal Revenue Product= Revenue Change

/Additional Input

Marginal resource cost (MRC) is the change in total cost that results from a unit change of some type of variable input.

Marginal Resource Cost= Cost Change

/Additional Input

In this situation we must calculate the change of revenues (MRP) and cost (MRC) when we add a new vehicle.  

We are increasing our delivery fleet in 1 unit

First calculate the change in total revenue

Total revenue= 1,500 packages * $0.10 in revenue=150

Marginal Revenue Product=$150/1=150

The Cost change is $100,

so Marginal Resource Cost= $100/1=100

3 0
2 years ago
TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plo
tatiyna

Answer:

$41.69.

Explanation:

P9 = Next dividend / Required rate - Growth rate

P9 = $5 / 8% - 2%

P9 = $5 / 6%

P9 = $5 / 0.06

P9 = $83.33

So, the stock price for 9th year is $83.33

Current stock price = P9 / (1 + Required rate of return)

Current stock price = $83.33 / (1+0.08)^9

Current stock price = $83.33 / (1.08)^9

Current stock price = $83.33 / 1.9990046271

Current stock price = 41.68574643115692

Current stock price = $41.69

Therefore, the current stock price is $41.69.

8 0
3 years ago
On April 1, the price of gas at Bob’s Corner Station was $4.95 per gallon. On May 1, the price was $5.45 per gallon. On June 1,
AnnyKZ [126]

Answer: Please refer to Explanation

Explanation:

1. a. Between April 1 and May 1, Bob’s price increased by $0.50 , or by ___ %.

To calculate, divide the difference in the amounts by the amount the change occured from.

The price increased by $0.50 from $4.95. Percentage Increase should be,

= 0.5 / 4.96 * 100%

= <u>10.1%</u>

b. Between May 1 and June 1, Bob’s price decreased by $ , or ____ %.

The Price by $0.5 from $5.95 to $4.95

= 0.5/5.95

<u>= -9.17% (</u>negative because it was a price decrease)

2. Across the street, their price is 20% higher than Bob's.

When Bob's prices are $5.45, there's are,

= 5.45 * ( 1 + 20%)

= 5.45 * 1.2

= $6.54

Difference is,

= 6.54 - 5.45

= <u>$1.09</u>

3. The Fed raised it's rate from 2% to 2.75%.

The change is,

= 2.75% - 2%

= 0.75%

This is a percentage Change of,

= 0.75/2 * 100%

= 37.5%

This change of <u>0.75</u> percentage points means that the Fed raised its target by approximately <u>37.5%.</u>

8 0
3 years ago
On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S
zepelin [54]

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

6 0
3 years ago
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