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3 years ago

If the absolute value of the price elasticity of demand is greater than 1:

Business

1 answer:

FrozenT [24]3 years ago

7 0

Answer:

b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.

Explanation:

Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:

$E_{D}$ = $\frac{dQ}{Q}{\frac{P}{dP} =$

= % Change in Quantity Demanded / % Change in Price

So when absolute value $E_{D}$ is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.

Note: Whether the percentage change in quantity demanded will be just a little or very much larger than percentage change in price will depend on how much $E_{D}$ is larger than 1. But b is the still the best answer among the options.

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What's the difference between a brand-name and a generic product? A. The company that sells the product B. The side effects of t

katen-ka-za [31]

Answer:

Explanation:

The quality should be about the same.

The social responsibility should also be about the same.

There shouldn't be side effects of most products. If you are speaking of medications, there really ought to be the same side effects with the same severity and the same statistical occurrences.

The only difference is the company selling the product.

There have been exceptions to this where different "fillers" were used in the generic brand and the side effects were different and more severe. I've only heard of one case however and I cannot remember what it was. Manufacturers were careful not to let it happen again.

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3 years ago

Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/boo

tino4ka555 [31]

Answer:

C. 1.34

Explanation:

Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio?

To calculate the ratio:

stock price at the end of last year was $33.50 divided by value per share of $25.00

= 33.50/25.0

= 1.34

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3 years ago

Bob has a loan that he does not think he can afford and wants to make sure his credit score is not affected. Which of the follow

Simora [160]

A. making at least the minimum payment, even if they are late

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3 years ago

Cari Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of

tester [92]

Answer:

Production December= 15,000

Explanation:

Giving the following information:

Month Unit Sales

October 10,000

November 14,000

December 15,000

Finished goods inventory at the end of November was 4,000 units.

To calculate the production required for December, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 15,000 + 16,000*0.25 - 4,000

Production= 15,000

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2 years ago

Suppose that in a month the price of movie rentals decreases from $3.25 to $3. At the same time, the quantity of movie rental

Sergeeva-Olga [200]

Answer:

The correct answer is option a.

Explanation:

The initial price of movie rentals is $3.25.

The initial quantity is 100.

The price falls to $3.

This causes demand to rise to 120.

The price elasticity of demand a ratio of change in quantity demanded to change in price level.

The elasticity is calculated at -2.25, through the process given in images.

The price elasticity of demand here is greater than 1 which means it is elastic.

So, option a is the correct answer.

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2 years ago