Answer:
A) Price elasticity of demand (PED) = 1
B) the PED is unitary
C) Danny's total revenue will decrease to $562.50
Explanation:
A) the formula for calculating price elasticity of demand is:
PED = % change in quantity demanded / % change in price
- % change in quantity demanded = (300 - 250) / 250 = 50 / 250 = 20%
- % change in price = ($2 - $2.50) / $2.50 = -$0.50 / $2.50 = -20%
PED = 20% / 20% = 1
B) the PED is unitary, it means that for every 1% change in the price, the demand will inversely change in 1%
C) since Danny lowered its price 20% from $2.50 to $2, he sold 20% more brownies, but his total revenue fell from $625 to $600. If he lowers his price even more, this time 25% to $1.50, his total sales will increase to 375 brownies, but his total revenue will continue to fall to $562.50
Answer:
The seller's proceeds is <u>$89,654</u>.
Explanation:
The seller's proceed is the difference between the total inflows and the out flows. This can be calculated as follows:
<u>Particulars $ $ </u>
<u>Inflows:</u>
Purchase price or sales proceeds 360,000
Refund on property tax in advance <u> 350 </u>
Total inflows 360,350
<u>Outflows:</u>
Commission (23,400)
Documentary transfer tax (396)
buyer's policy of title insurance (650)
Escrow fees (250)
Loan payoff <u> (246,000) </u>
Total outflows <u> (270,696) </u>
Proceeds <u> 89,654 </u>
Therefoe, the seller's proceeds is <u>$89,654</u>.
Answer: A
Explanation:
Don't know the explanation just put A trust me.
In a country with a high uncertainty avoidance majority of people have an increased level of anxiety about uncertainty and ambiguity
<span>In this closed economy for basketball tickets, we experience a limited, finite supply, and an increasing demand for the tickets as the playoff season approaches. As such, we expect the demand curve to move through reselling until settling at a new equilibrium consisting of a much higher price for the tickets than the original $30 figure.</span>