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Sphinxa [80]
3 years ago
14

When the price of a good is $5, the quantity demanded is 120 units per month; when the price is $7, the quantity demanded is 100

units per month. using the midpoint method, the price elasticity of demand is about
a. 1.83.
b. 2.
c. 10.
d. 0.55?

Business
1 answer:
Gre4nikov [31]3 years ago
6 0
Price elasticity can be calculated using the attached formula where:
the first term represents the % change in quantity and the second term represents the % change in price

% change in quantity = (100-120) / (220/2) = -2/11 x 100 = -18.1818%
% change in price = (7-5) / (12/2) = 33.3333%

price elasticity = 18.1818/33.3333 = 0.55

Note that the price elasticity is usually taken as an absolute value.

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ABC Tax Planning Service started business in January 2018. The company rented an office for 7,000 per month starting from Januar
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The answer is: C) $14,000

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3 0
3 years ago
Pow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. Th
sergeinik [125]

Answer:

b. 2018 net income is overstated by $750

Explanation:

As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.

Also we can deduct the same logic considering the accounting equation

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if asssets are 750 higher than it should, then Equiy is higher as well

+750  = +750

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8 0
3 years ago
Which of the following can a grocery store change in the long run?
ddd [48]

Answer:

I believe all of the above

Explanation:

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3 0
3 years ago
Gabby Company sells a product for $ 100 per unit. Variable costs are $ 60 per​ unit, and fixed costs are $ 2 comma 500 per month
Ann [662]

Answer:

(a) $40

(b) $24,000

(c) 40%

Explanation:

Given that,

Selling price = $100 per unit

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Fixed costs = $2,500 per month

Contribution margin per unit:

= Selling price - Variable costs

= $100 per unit - $60 per​ unit

= $40

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= $40 × 600 units

= $24,000

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= ($100 per unit - $60 per​ unit) ÷ $100 per unit

= 0.4 or 40 %

4 0
3 years ago
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