Items Billions of $

Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price chang

Vinvika [58]

Answer:

$Price Elasticity of Demand= \frac{Percentage change in Demand}{Percentage change in Price}$

At Price = $P_{0}$

Quantity demanded = $Q_{0}$

At Price = $P_{1}$

Quantity Demanded = $Q_{1}$

Now,

$Percentage change in Demand = \frac{(Q_{1} - Q_{0})}{Q_{0}}$

$Percentage change in Price = \frac{(P_{1} - P_{0})}{P_{0}}$

$Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{Q_{0}}}{\frac{(P_{1} - P_{0})}{P_{0}}}$

Above formula if used will give the correct answer related to Price Elasticity of Demand.

Another variant of above formula is also being used on prominent basis.

$Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{(Q_{1} + Q_{0})} }{\frac{(P_{1} - P_{0})}{P_{1} + P_{0}} }$

Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.

5 0

3 years ago

Which of these is most likely a short-term goal for a high school freshman? A. Buy a house B. Retire comfortably C. Graduate fro

SVETLANKA909090 [29]

Answer:

D. Attend this afternoon's meeting

Explanation:

So Many high school freshman have a goal just to become familiar with their new setting.

3 0

3 years ago

Kevin bought 300 shares of Intel stock on January 1, 2019, for $90 per share, with a brokerage fee of $200. Then, Kevin sells al

DiKsa [7]

Answer:

$27,200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

Kevin's basis = (300 shares x $90 per share) + $200 in sales commission

Kevin's basis = $27,000 + $200 = $27,200

Hope This Helps! :D

4 0

3 years ago

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from cus

LiRa [457]

Answer:

Explanation:

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Question

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $325,000; Cash paid for rent, $37,000; Cash paid to employees for services rendered during the year, $117,000; Cash paid for utilities, $47,000. In addition, you determine that customers owed the company $57,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

4 0

3 years ago

Amy's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Amy's very tiny kitchen has barely

Mkey [24]

Solution :

Amy can only change the number of workers. As the fixed input cannot be changed in the short run, so in the short run, the workers are the variable inputs and the ovens are the fixed inputs.

a). Marginal Product of labor

No. of workers The Output The Marginal product of labor

0 0 ---

1 60 60

2 100 40

3 130 30

4 150 20

5 160 10

The marginal product of the labor is the change in the quantity i.e pizza as Amy hires an additional worker.

1 worker raise the output to 100, so the marginal product of labor of 1 worker is 100 and so on. The marginal product of the labor = change in the output / change in the number of workers.

b).

No. of workers The Output The Fixed cost The Variable cost Total cost

0 0 20 0 20

1 60 20 30 50

2 100 20 60 80

3 130 20 90 110

4 150 20 120 140

5 160 20 150 170

The fixed cost remains the same but the variable cost increases as one more worker is hired.

The law of the diminishing the marginal product of labor is determined by = total output increases at the decreasing rate as we increase the quantity of the labor.

7 0

3 years ago