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umka21 [38]
3 years ago
10

• explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of el

asticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain your responses using empirical examples, formulas, and graphs.
Business
1 answer:
Anna11 [10]3 years ago
4 0

Answer:

If the price elasticity of demand is elastic, if the price decreases, total revenue will increase.

E.g. a product has a PED of 1.5, and 1,000 units are sold at $10 per unit, total revenue = $10,000.

If the price decreases by 10% to $9 per unit, the quantity demanded will increase to 1,150 units, and total revenue will increase to $10,350.

On the other hand, if the price elasticity of demand is inelastic, if the price increases, total revenue will increase.

E.g. the same product but with a PED of 0.5, and 1,000 units are sold at $10 per unit, total revenue = $10,000.

If the price increases by 10% to $11 per unit, the quantity demanded will decrease to 950 units, and total revenue will increase to $10,450.

A real world example that involves an extremely inelastic good is gasoline. Since gasoline has a very inelastic demand (between 0.02 - 0.04). That is why the quantity demanded barely changes if the price of gasoline since a steep increase in gasoline prices represents a larger expense per month.

The price of gasoline during 2008 was so high that it reached $4.11 per gallon, while today it costs on average $2.10 per gallon. That is a huge difference specially if we consider inflation and current dollars. As gasoline prices increase with a steady demand, the revenues of oil companies skyrocketed.

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Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is re
Reika [66]

The entry is required in the company's accounts debit cash ;Credit notes receivable and interest revenue.

If a business frequently trades in goods or services for notes, it would likely add a debit column for notes receivable to the sales book so that the general journal would not need to be used to record these transactions. It is also possible to build a separate subsidiary ledger for notes payable. A corporation should create a separate provision for bad debts account specifically for notes receivable if the quantity of notes receivable is substantial.

A note is considered to be honored when the maker pays it in accordance with the terms written down on it.

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7 0
2 years ago
At every point on a demand curve, the height of the demand curve indicates: A. the minimum price the consumer is willing to pay
Law Incorporation [45]

Answer:D

Explanation:

5 0
3 years ago
Can you list three things you can do to improve job satisfacation in the work place?
AURORKA [14]

Answer:

When working with tight budgets, what can you do to boost job satisfaction at your company? These 3 simple but effective tips will help ensure your employees feel fulfilled and appreciated within their role.

Engage your employees

Having people turn up to work and do a day's graft before going home isn't all you want from your employees. Getting staff that are engaged with your company is much more preferable and to achieve this you need to communicate with them. This doesn't mean just speaking to them but creating an atmosphere where their insights are valued and they feel free to talk about things they are concerned about.

This will not only boost their job satisfaction because they feel more understood but will also help you identify areas where improvements could be made. Many professionals benefit from a higher level of autonomy as it shows that you have a certain amount of trust in them, while also encouraging initiative and self-discipline.

Line managers can be a fantastic resource to encourage these communication channels and identify areas where staff seem unsatisfied or want to develop. However, it's important for everyone - from the top down - to be supportive of employee engagement and embody this in their working day.

Provide a positive work environment

Employees spend a lot of time at work so do everything you can to make this a positive atmosphere to be in. However, it's key that you don't just assume what good working conditions are and instead actually ask the people working for you.

Everything from childcare support to social events can help people feel happier about being in the office but it should be designed around the needs and wants of your employees. Otherwise you risk spending money on something that isn't really valued by your staff, wasting money and potentially causing discontent among your workforce.

It's also important to consider matters such as dress code and office layout as well as benefit schemes. These can make a huge difference on how comfortable people feel during their time in the office.

Evaluate, analyze and improve

Like any other business goal, you should make sure measurement plans are in place to see what progress you are making. There's a number of ways you can track employee satisfaction and a variety of online resources to help you. However, a simple anonymous survey can be just as effective, especially for small companies where evaluating the responses won't be too laborious.

This should allow you to identify areas that have had the biggest impact and where you may need to make further improvements.

7 0
3 years ago
An extended period of little or no growth in gdp, wages, and prices is a period of?
dolphi86 [110]

An extended period of little or no growth in GDP, wages, and prices is a period of stagnation.

When real economic growth is less than 2% annually it is considered stagnation. Stagnation is a prolonged period of little or no growth in an economy. This no growth economic period affects various sectors of the economy such as GDP, wages, prices etc.

Stagnation can occur as a temporary condition, such as a growth recession or temporary economic shock. Stagnation is a situation which occurs within an economy when total output is either flat, declining, or growing slowly.

Hence, stagnation in economy can occur due to a number of causes.

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3 0
2 years ago
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,
VikaD [51]

Answer:

$34,600

Explanation:

The computation of beginning retained earnings balance is seen below:

But we know that;

Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid

$51,600 = Beginning retained earnings + $21,100 - $4,100

Beginning retained earnings = $51,600 - $21,100 + $4,100

Beginning retained earnings = $34,600

4 0
3 years ago
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