1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
loris [4]
3 years ago
11

If price increases by 12 percent and quantity demanded decreases by 10 percent, demand is _________

Business
1 answer:
Vinil7 [7]3 years ago
6 0

Answer:

Demand is Inelastic

Jack : Substitution Effect dominates

Becky : Buy fewer hiking boots

Explanation:

Elasticity of Demand is responsive change in demand due to change in price. Demand is : Elastic - When proportionate change (% change) in demand > proportionate (% change) in price and Inelastic - When proportionate change  (% change) in demand < proportionate change (% change) in price .

So, If price rise by 12% & demand decreases by 10% , Demand is Inelastic.

a. Substitution Effect is consumer's shift from dearer to cheaper goods & so,  rise in demand of falling prices good , fall in demand of rising prices good . Jake buying lesser T shirts (relatively expensive) when price of Donuts fall (relatively cheaper) means Substitution Effect dominates for him.

b. Income Effect is price - demand inverse relationship, by change in real purchasing power due to price change. Price rise reduces real purchasing power, decreases demand & price fall increases real purchasing power, increases demand. Becky's paint brush price rise reduces her real purchasing power & she consumes less of both paintbrushes & hiking boots.

You might be interested in
Net sales revenue for 2024 was and for 2025 was . what is the percentage of increase or decrease in net sales revenue for the tw
polet [3.4K]

The percentage of increase or decrease in net sales revenue  a decrease is 15.45%

Sales in 2024 = $110000

Sales in 2025 = $93000

Decrease in sales between two periods = ($110000 - $93000) = $17000

Percentage of decrease in sales = [($17000 / $110000 Base year) X 100]

=> 15.45% decrease in net sales revenue from 2024 to 2025

Net sales are gross sales generated by the business, excluding returns, rebates, and rebates. This number is used by analysts when making business decisions or analyzing a company's revenue growth.

Total sales are not adjusted for returns, rebates, and rebates. The earnings reported on the top line of a company's income statement are net earnings. Net sales are also known as net sales, net sales, or sales.

Revenue is the total amount of revenue from sales for a specific period. Quarters. Sales may be reported as net sales as they may include discounts and deductions from returned or damaged merchandise.

Learn more about  net sales revenue here:

https://www.plagiarismremover.net/

#SPJ4

6 0
2 years ago
Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal
Igoryamba

Answer: $1000

Explanation:

First, we calculate the amount if bad debt expense which will be:

= 3% × $50000

= $1500

Therefore, the balance of accounts receivable at the end of the first year will be:

= Amount of bad debts expense - Account written off

= $1500 - $500

= $1000

5 0
3 years ago
Trey Tires is going to merge with Big Spokes, and the merger will result in layoffs. As a result, the workers are not happy. The
zaharov [31]

Answer:

The correct answer is: soldiering.

Explanation:

American economist Frederick Winslow Taylor (1856-1915) in his book "<em>The principles of Scientific Management</em>" (1911) described the term soldiering to refer as the act by which individuals decrease the efficiency of their duties at work in purpose because of different adverse situations arose such as few wages incentives or the belief that by increasing productivity the less productive workers could be affected through lay-offs.

8 0
3 years ago
Ballard Company reported assets of $500 and liabilities of $200. What amount will Ballard's report for stockholders' equity?
Westkost [7]

Answer:

$300

Explanation:

Data provided in the question

Assets reported = $500

Liabilities = $200

So, Stockholder equity is

= Total assets - total liabilities

= $500 - $200

= $300

By applying the accounting equation, that equal to

Total assets = Total liabilities + owners equity

We can find out the stockholder equity by deducting the total liabilities from the total assets

7 0
3 years ago
Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
zmey [24]

Answer:

Market price: 28.90

Explanation:

We will calculate the stock price using the gordon dividend grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

D1 = 1.25

grow = g = 6% = 6/100 = 0.06

return= for the return, based on the information give, we will calculate it using the CAPM model:

Ke= r_f + \beta (r_m-r_f)  

risk free = 0.04

premium market=(market rate - risk free)= 0.055

beta(non diversifiable risk)= 1.15    

Ke= 0.04 + 1.15 (0.055)  

Ke =cost of capital = return in the dividend grow formula = 0.10325  

Now, we calculate the stock price:

\frac{1.25}{0.10325-0.04} = Intrinsic \: Value

Stock: 28.9017341

Market price: 28.90

8 0
3 years ago
Other questions:
  • Eliminating the queue of work dramatically quickens the time it takes apart to flow through the system. What are the disadvantag
    14·1 answer
  • A couple planning a vacation may choose a hotel that costs more but uses appealing advertisements showing people enjoying a hot
    11·1 answer
  • Carl wants to buy a video game console. He has identified two important attributes to compare: price and game
    15·1 answer
  • The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, the end of t
    11·1 answer
  • Which of the following strategies is used in the following ad:
    13·2 answers
  • During 2021, Terps Company issued 800,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitte
    6·1 answer
  • What are important of storing​
    6·1 answer
  • If you are e-filing your tax returns, explain why it is beneficial to file your federal and state taxes through the same e-filin
    7·1 answer
  • The term _______________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price
    9·1 answer
  • hard hat company is in the process of purchasing several large pieces of equipment from machine corporation. several financing a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!