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
timofeeve [1]
3 years ago
9

Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per

day increased from 10 to 40. Over this price range, the price elasticity of demand for Dunkin Donuts’ regular coffee is:
Business
1 answer:
harkovskaia [24]3 years ago
3 0

Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8

Explanation: Using the midpoint formnulae

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

Percentage change in quantity = new quantity  - old quantity  / (new quantity + old quantity)/2  x 100

= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%

Percentage change in price  = new price   - old price   / new price + old price)/2   x 100

= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

= 120%/-66.67%= -1.79 = -1.8

For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.

You might be interested in
________________ analyzes how we choose to use our resources on an aggregate (national)level and includes measures of performanc
Alecsey [184]

Macroeconomics is the branch of economics which deals with largescale or general economic factors like interest rates and national productivity. The correct answer is Macroeconomics.

<h3><u>What does Macroeconomics deal with?</u></h3>
  • Macroeconomics examines the functioning, structure, and behavior of the entire economy (like people, households, industries, etc.) in contrast to microeconomics, which focuses primarily on the decisions made by individual economic actors.
  • It analyzes the economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. It also analyzes the causes, stimulation and driving forces of these phenomena and how the national performance can be improved.
  • The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

Therefore, the national performance indicators like inflation, unemployment, and federal government expenditures and resource utilization are analyzed are studied under Macroeconomics.

You can learn more about Inflation using the following link: brainly.com/question/1082634

#SPJ4

8 0
1 year ago
For most consumers, maximizing utility through consumption generally means finding good deals in order to maximize the utility r
VladimirAG [237]

Answer:

The explanation of that situation is below.

Explanation:

To begin with, the most important factor to have in mind in the situation explained above is the fact that we are talking about a "luxury good" and therefore that when it comes to this type of goods is better when the majority of the people do not possess or at least they must represent the fact that they are exclusive for only some part of the population. That is why that those goods use the strategy of increase always the price because that will means that they are not affordable for the majority of the society but only for a few and that will give to the owner of the good a sense of uniqueness and with that it also comes the sense of superiority. That is why that when it comes to this type of good the analysis change and it collides with the other theory of utility maximation.

8 0
2 years ago
This graph shows the US unemployment rate from Aug 2010 to Nov 2011... what question could best help the economist answer
kari74 [83]
I think it might be b
4 0
3 years ago
During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as foll
hram777 [196]

Answer:

the net sales for the two months is $2,448

Explanation:

The computation of the net sales for the two months is shown below:

= Sale made on Jan 6 + sale made on Jan 6 + sales made on Feb 28 - discount on sale made on Jan 6

= $1,400 + $690 + $400 - ($1,400 × 3%)

= $2,490 - $42

= $2,448

hence, the  net sales for the two months is $2,448

The same is to be considered

5 0
2 years ago
A woman walks into a store and steals $100 she comes back and buys $70 worth of goods with the $100, the owner gives her$30 in c
deff fn [24]
The answer is $100.

Amount she steals= $100
Amount she bought goods= $70
Amount the owner returns as change = $30
Amount owner loses=?

Amount she steals +amount of goods - amount she gives to owner + amount owner returns as change = $100 + $70 - $100 + $30 = $200 - $100 = $100
8 0
3 years ago
Other questions:
  • Which is a tool used by the federal reserve in the conduct of monetary policy?
    7·1 answer
  • When you take exit ramp off the expressway and merge onto the next road you see yellow lines dividing the roadway what do the ye
    5·2 answers
  • International Paper's land management strategy included investments in hunting and game preserves which were not part of IP's bu
    15·1 answer
  • How to create a social media platform
    5·2 answers
  • A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out o
    6·2 answers
  • What is the future value of $450 at an interest rate of 15 percent one year from today?
    12·1 answer
  • Devonaile inc. is a small-scale apparel manufacturer in florida. devonaile and other similar firms from florida collaborate and
    10·1 answer
  • Consultant Co. is in the business of public relation consulting. The firm has two units: Government (working with various levels
    6·1 answer
  • Does anyone know what are the ratios used to analyze the financial statements of banks?
    12·1 answer
  • Wrigley’s offers grapefruit-, cucumber-, and tea-flavored chewing gum in china, which is an example of a ________ global marketi
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!