It should be noted that when demand for a product is unit elastic and one would expect sales to equal: 5 units.
<h3>What is elastic demand?</h3>
An elastic demand can be regarded as the demand whereby change in quantity demanded due to a change in price is large.
An inelastic demand entails change in quantity demanded due to a change in price is small.
Learn more about elastic demand at;
brainly.com/question/24384825
Answer: Becky's income elasticity of demand for eating at Macaroni grill is 10.22.
We calculate income elasticity of demand with the following formula:
![\mathbf{\eta _{I}= \frac{(Q_{1}-Q_{0})/(Q_{1}+Q_{0})}{(I_{1}-I_{0})/(I_{1}+I_{0})}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%28Q_%7B1%7D-Q_%7B0%7D%29%2F%28Q_%7B1%7D%2BQ_%7B0%7D%29%7D%7B%28I_%7B1%7D-I_%7B0%7D%29%2F%28I_%7B1%7D%2BI_%7B0%7D%29%7D%7D)
where
η is the Greek letter eta that is used to denote elasticity of demand
Subscript I is used to denote Income elasticity
Q₁ is the quantity consumed after change in income
Q₀ is the quantity consumed before in income
I₁ is the new income
I₀ is the old income
Substituting the values we get,
![\mathbf{\eta _{I}= \frac{(5-3)/(5+3)}{(33500-31900)/(33500+31900)}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%285-3%29%2F%285%2B3%29%7D%7B%2833500-31900%29%2F%2833500%2B31900%29%7D%7D)
![\mathbf{\eta _{I}= \frac{(2)/(8)}{(1600)/(65400)}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%282%29%2F%288%29%7D%7B%281600%29%2F%2865400%29%7D%7D)
![\mathbf{\eta _{I}= \frac{0.25}{0.024464832} = 10.21875}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B0.25%7D%7B0.024464832%7D%20%3D%2010.21875%7D)
Answer:
The correct option is D. P decreases, Q increases.
Explanation: When the marginal cost and average cost of production are reduced, this will lead to a reduction in the price of the final product or service.
Also, in introducing a technological innovation that lowered the costs of production, what the monopolist has succeeded in achieving is that the quantity of output will be driven up, as it will now cost less to produce the same unit, then more units can be conveniently produced.
Therefore, the price will reduce, but this will not be a problem because the monopolist will make up for this by increasing the quantity of output. This will ensure that the revenue generated will either remain at the same level as before, or it will surpass the level as before.
a. Indicating the cost of a good.
Answer:
False
Explanation:
alanced Scorecard is a set of financial and non-financial measures relating to a company's critical success factors. It is an approach which provides information to management to assist in strategy implementation. An ideal balanced scorecard combines financial measures of past performance with measures of the firm's drivers of future performance.