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professor190 [17]
4 years ago
6

The demand function for a product is defined as Q = 24 – 2 P. If price is equal to 4, then the price elasticity of demand is A.

elastic. B. unit elastic. C. inelastic. D. There is not enough information to determine the answer.
Business
1 answer:
leva [86]4 years ago
5 0

Answer:

option (c) inelastic

Explanation:

Given:

Q = 24 – 2 P

at P = 4

Q = 24 - 2(4)

= 16

Now,

Elasticity = \frac{\textup{dQ}}{\textup{dP}}\times\frac{\textup{P}}{\textup{Q}}

on substituting the respective values, we get

Elasticity = \frac{\textup{d(24 – 2 P)}}{\textup{dP}}\times\frac{\textup{4}}{\textup{16}}

or

Elasticity = -2 × 0.25

or

Elasticity = - 0.5

Since,

Elasticity is less than 1, therefore, the demand is inelastic.

Hence,

option (c) inelastic

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Answer:

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Explanation:

Note: Figures are not inputted. The missing figures have been figured out as below.

"<em>Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead cost were $23000.  What was nexus fixed manufacturing overhead volume variance in May</em>?"

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Fixed manufacturing overhead volume variance = $23,000 - $56,700

= $33,700 (Favorable) .

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