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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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In 2019, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. T

Yuliya22 [10]

Answer:

Break-even point in units= 1,500

Explanation:

Giving the following information:

Selling price= $600

Unitary variable cost= $420

Fixed cost= $270,000

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 270,000 / (600 - 420)

Break-even point in units= 1,500

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3 years ago

Two brothers wish to open an account to trade stocks, with one brother depositing $100,000, and the other brother depositing $20

Lostsunrise [7]

Answer:

The account should be opened as a Joint account with tenancy in common. Option C.

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Joint account with tenancy in common can hold an unequal amount of investment among members, but they still have equal rights to the account.

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3 years ago

Which of the following is not a positive of having a large trade deficit? A. A large trade deficit can signal the positive expe

krok68 [10]

The answer for this one is B

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3 years ago

Mr. and Mrs. Alvarez paid $130,000 for their home 30 years ago. They recently sold this home and moved into a rented apartment.

amid [387]

The tax consequences faced by Mr. and Mrs Alvarez for the sale of their home are as follows:

a. They have a realized loss of $5,000 for situation A.

b. They have a realized gain of $320,000 for situation B.

c. They have a realized gain of $720,000 for situation C.

Data and Calculations:

Cost of the home 30 years ago =$130,000

a. Realized capital loss = $5,000 ($130,000 - $125,000)

b. Realized capital gain =$320,000 ($450,000 - $130,000)

c. Realized capital gain = $720,000 ($850,000 - $130,000)

Thus, Mr. and Mrs. Alvarez can also claim the full $500,000 exemptions to reduce their capital gain tax burdens in the three situations since they inhabited the home for more than two years. However, their exemptions are limited to the net gain.

Learn more: brainly.com/question/17005177

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2 years ago

A project's break-even occupancy level is determined by: _______________

AlekseyPX

Answer:

a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.

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2 years ago