Price elasticity of demand is defined by Change in Quantity demanded / Change in Price.
Tom ordered 10 gallons of gas without asking about the price. This means that no matter the price, Tom orders the same quantity of gas (quantity demanded does not change with price). His demand is perfectly inelastic, or 0.
Jerry orders $10 worth of gas. This means that no matter how much it gives him, Jerry will pay $10. The price elasticity of demand depends on how much the price changes by.
For example, if price doubles from $5/gal to $10/gal, demand falls by 50% (2 gallons to 1 gallon), making his price elasticity -0.5
If the price increase 10% from $10/gal to $10.10/gal, demand falls 1% from 1 gal to .99 gallons, making his price elasticity -0.1
Answer:
"4"
Explanation:
Human relations approach to employees management believes that employees are not only motivated by financial incentives but other factors like praises , interpersonal relationship and delegation of roles and this in return , boost their commitment.
The managers are involved in active support of employees' growth and performance.
It underscores the importance interpersonal and social relationship in a work environment.
Answer:
$124,700
Explanation:
Indirect labor budgeted is $57,000
Factory supervision is $65,000
The normal capacity is 142,500
Direct labor 145,000
Therefore the flexible budget can be calculated as follows
= 57,000+65,000/142,500
= 122,000/142,500
= 0.86
0.86×145,000
= 124,700
Hence the flexible budget is $124,700
Answer:
The first and third statements are correct. These statements are:
The utility function of a risk-averse person exhibits the law of diminishing marginal utility.
The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.
Explanation:
A risk-averse individual is the one who tends to avoid taking risks. In other words, such an individual prefers lower returns with known risks as opposed to higher returns with unknown risks.
The utility curve for a risk-averse individual is concave in shape. This implies diminishing marginal utility, that is, the satisfaction derived from each additional dollar gained is less than that derived from the previous dollar. Therefore, the first and third statements are both correct.
The second statement is false because risk-averse individuals do not over-estimate the probability of losing money. The fourth statement is also false because risk-averse individuals receive less satisfaction from each additional dollar, not more.
Answer:
The correct answer is Matrix.
Explanation:
In a matrix structure each manager is in charge of the results and tasks executed in his area. Employees are usually accountable to one person who generally manages the project and to another who directs a specific area. The great advantage of this structure is that it allows direct communication, making it possible to take corrective measures faster, in the same way it allows each person to focus on each task so that they can transmit some requirement to the closest person.
