Answer:
0.6
Explanation:
Initial Units sold, Q1 = 40 pairs
Initial Price, P1 = $40
Final price, P2 = $20
Final units sold = 60 pairs
Now,
Using the midpoint formula,
the absolute value of the price elasticity of demand
price elasticity of demand = ![\frac{\frac{Change in quantity sold}{\frac{Total quantity sold}{2}}}{\frac{Change in price}{\frac{Total price}{2}}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7BChange%20in%20quantity%20sold%7D%7B%5Cfrac%7BTotal%20quantity%20sold%7D%7B2%7D%7D%7D%7B%5Cfrac%7BChange%20in%20price%7D%7B%5Cfrac%7BTotal%20price%7D%7B2%7D%7D%7D)
or
price elasticity of demand = ![\frac{\frac{Q2-Q1}{\frac{Q1+Q2}{2}}}{\frac{P1-P2}{\frac{P2+P1}{2}}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7BQ2-Q1%7D%7B%5Cfrac%7BQ1%2BQ2%7D%7B2%7D%7D%7D%7B%5Cfrac%7BP1-P2%7D%7B%5Cfrac%7BP2%2BP1%7D%7B2%7D%7D%7D)
or
price elasticity of demand = ![\frac{\frac{60-40}{\frac{40+60}{2}}}{\frac{40-20}{\frac{40+20}{2}}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7B60-40%7D%7B%5Cfrac%7B40%2B60%7D%7B2%7D%7D%7D%7B%5Cfrac%7B40-20%7D%7B%5Cfrac%7B40%2B20%7D%7B2%7D%7D%7D)
or
price elasticity of demand = ![\frac{\frac{20}{50}}{\frac{20}{30}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7B20%7D%7B50%7D%7D%7B%5Cfrac%7B20%7D%7B30%7D%7D)
price elasticity of demand = 0.6
Answer:
sales decline
Explanation:
everyone stopped buying DVDS because they are kind of useless at this time period, which means they couldn't make any money
C relative price » sub effect & income effect
Answer:
the journal entry should be:
Dr Cash X
Cr Dividend revenue X
When a company holds securities as an investment and classifies them as available for sale (AFS), any dividends received will be recorded as revenue.
Dividend revenue is reported in the income statement.