Answer with explanation:
It is better for companies to offer a mixture of compensation programs instead of only one since it attracts a major number of competent workers. Some employees might be very selective at the time of choosing a job according to the benefits they could receive. For instance, a high executive could prefer to start working in an "A" firm since they organization offers an attractive number of stock shares per year as part of the compensation program instead of working for firm "B" that is not even publicly listed.
Answer:
1
Unitary elastic
Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%
Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%
Elasticity of demand = 40% / 40% = 1
If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.
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