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NARA [144]
3 years ago
9

Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the pr

ice elasticity of Bobo's demand curve?
Business
1 answer:
goldfiish [28.3K]3 years ago
4 0

Answer:

price elasticity of demand for Bobo's demand curve using the midpoint method = 4.25

Explanation:

the price elasticity of demand (PED) refers to the proportional change in quantity demanded when the price of the good or service changes by 1%.

In order to calculate PED for a portion of the demand curve we must use the midpoint method:

PED = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]} = {(3 - 1) / [(3 + 1) / 2]} / {(15 - 19) / [(15 + 19) / 2]} = (2 / 2) / (4 / 17) = 1 / 0.235 = 4.25

Bobo's PED is elastic since it is larger than 1.

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In america today, what percentage of individuals between the ages of 14 and 17 are in school?
Sliva [168]

According to the National Center for Educational statistics, approximately 90-99% of children age 14-15 are enrolled in school (this does not measure the number that actually attend school).

8 0
3 years ago
Carver Packing Company reports total contribution margin of $80,200 an pretax net income of $40,100 for the current month. In th
Helen [10]

Answer:

• Degree of operating leverage = $2

• Expected Percent change in income = 20%

Explanation:

Details provided from the question includes ;

Total contribution margin = $80,200

Pretax net income = $40,100

Expected increase in sales value = 10%

Therefore;

Degree of operating leverage

= Contribution margin ÷ Net operating income

= $80,200 ÷ $40,100

= $2

Percent change income

= Percentage increase in sales × Degree of operating leverage

= 10% × 2

= 20%

8 0
3 years ago
Suppose that a coal factory emits pollution into the air and that a nearby neighborhood is harmed by this pollution. It would co
DanielleElmas [232]

Answer: The right answer are: a)the neighborhood will negociate to get the pollution cleaned up. b)the neighborhood will required the coal factory to clean up the pollution

6 0
3 years ago
Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from opera
-Dominant- [34]

Answer:

Option D) The company's depreciation and amortization expenses declined

Explanation:

When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence,  in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,  

Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.

8 0
2 years ago
Suppose the economy is experiencing an output gap of –3%. a. Select each response that indicates how monetary policy or fiscal p
igor_vitrenko [27]

Answer:

Suppose the economy is experiencing an output gap of –3%

a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:

The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.

The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.

b. The policies identified in part a,

can be used together to raise actual output toward potential output.

Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S).  This equilibrium can be achieved at a level of interest rate that maximizes output.  The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

7 0
2 years ago
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