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professor190 [17]
3 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]3 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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The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to t
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Answer:

A, B and D

Explanation:

Expanding the money supply is an exercise of expansionary monetary policy.

This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.

This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,

GDP = C + I + G + (X - M), where I = investment.

This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.

Hope this helps.

8 0
3 years ago
TRUE OR FALSE FOR BRAINLIEST ANSWER 1. Generally, a contract must state all of its terms. There can be no missing information an
n200080 [17]
True, and that would be the answer :)
3 0
3 years ago
Alain Mire files a single tax return and has adjusted gross income of $309,000. His net investment income is $48,000. What is th
Anuta_ua [19.1K]

Answer: $1,824

Explanation:

According to the IRS, Net Investment Income tax is the lesser figure of either,

i. The net investment income or,

ii. Modified adjusted gross income less the threshold of $200,000 of the person.

The lesser figure is then multiplied by 3.8% to find the tax.

Alain Mire's net Investment Income is $48,000.

His Modified adjusted gross income less the threshold of $200,000 is,

= 309,000 - 200,000

= $109,000

The lesser figure is his Net Investment Income so Additional Tax is,

= 48,000 * 3.8%

= $1,824

5 0
3 years ago
True or false<br><br> Macroeconomics deals with the behaviour of individual economic units. ​
VashaNatasha [74]

Answer:

false. it deals with ecomonics as a whole. it's in the name dude

6 0
3 years ago
Read 2 more answers
Corona Co. is expecting to receive 100,000 British pounds in one year. Corona expects the spot rate of British pound to be $1.49
Grace [21]

Answer:

Explanation:

1st strategy : Selling pound forward

The spot rate of the pound is quoted at $1.51.

The one-year forward rate exhibits a 2.65% premium.

The one-year forward rate = 1.51 ( 1+ 0.0265)

= $ 1.55

Dollars received = 100000 * 1.55 = $155000

2nd strategy : Buying put option

The strike price of put = $1.54

premium on option is $.03

Amount received per option = $ 1.54 - $ 0.03 =$1.51

Total Dollars received = 100000* 1.51 = $ 151000

the best possible hedging strategy is Selling pound forward and receiving $155000

7 0
3 years ago
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