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Anettt [7]
3 years ago
10

Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he

bakes himself. At a price of $1.50 each, he sells 100. At a price of $1.00 each, he sells 300.
a. Is demand elastic or inelastic over this price range? .
b. If demand had the same elasticity for a price decline from $1.00 to $0.50 as it does for the decline from $1.50 to $1.00, would cutting the price from $1.00 to $0.50 increase or decrease Danny’s total revenue? .
Business
1 answer:
Goryan [66]3 years ago
8 0

Answer:

a) Elastic

b)  total revenue is increased

Explanation:

a) The demand is elastic over the given range.

The demand is elastic because, with the variation in the price of the brownies the demand for the brownies varied too i.e the demand changes.

b) Now,

if the elasticity is same for the decline in price from $1.00 to $1.50 i.e 300

the revenue will increase as:

when the price was $1.00 the demand is 100

i.e

the total revenue = $1.00 × 100 = $100

now,

when the price decline to $0.50 the demand changes to 300

i.e

the total revenue = $0.50 × 300 = $150

hence,

the total revenue is increased.

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Answer:

The answer is "Option c".

Explanation:

The customer service must matter arising' needs to fulfill everyone. The Sampson Company, a timber manufacturer, understands the wood specifications or conditions for several firms within the NAICS category. Within this case, the Dunn Company will develop the timber specifications or criteria of all firms underclass.

5 0
3 years ago
3. You have $100 to invest. The price of XYZ stock is $100. You sell short one share of XYZ and then invest all available funds
tigry1 [53]

Answer:

HPR = holding period Return is 20%

Explanation:

  • Given original Investment = $100
  • Short sale proceeds for 1 share = $100
  • Investment made of $100 + short sale proceeds of $100 at 5% YTM.
  • So Maturity Value = Investment x (1+YTM)^number of years  
  • = 200 x (1 + 0.05)^1 = 210  

 

  • Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90  
  • As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount  
  • = (210 - 90 - 100) / 100 = 0.2 or 20%  

 

  • Hence, HPR = holding period Return is 20%  
5 0
3 years ago
Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A wi
Ne4ueva [31]

Answer:

Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.

Remember standard of living is measured by:

GDP per capita= Total GDP/ Total population

So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.

So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.

8 0
3 years ago
When ships carrying imported goods arrive at U.S. ports, customs officers are responsible for inspecting the goods and determini
azamat
I think The answer is b
3 0
3 years ago
Which of the following is not generally regarded as a legitimate reason for gov't to intervene in a market?
Bess [88]

Answer:

C. To enforce property rights

Explanation:

Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.

Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .

Government budget is anual financial statement showing economy's expected revenue & expenditure .

Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .

Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .

However all these are progressive legitimate reason for govt. Intervention .

But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.

7 0
4 years ago
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