When price increases by 10 percent, the quantity supplied increases by nine percent.
<h3>What is the percentage increase in the quantity supplied?</h3>
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good. Price and quantity supplied have a positive relationship.
If the value of the price elasticity of supply is less than one, it means that supply in inelastic. Supply is inelastic if a small change in price has little or no effect on quantity supplied.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
percentage change in quantity supplied = percentage change in price X price elasticity of supply
0.9 x 10 = 9%
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Answer: . an increase in aggregate demand and short-run aggregate supply
Explanation:
From the question, we are informed that during the 1990s, the economy of the United States was experiencing long-run economic growth, low unemployment, and a stable inflation rate.
The reason for this is due to an increase in aggregate demand and short-run aggregate supply. This two factors will lead to the long run economic growth which the United States experienced.
Answer:
Debt = 70%, Equity = 30%, EPS = $3.42, Stock price = $30.40, Cost of Debt = 5.0%, , Capital Budget $ 14 Million
Explanation:
The goal of the manager is to create the most welalth in favor of the stockholerd that is to provide the best earning per share for them.
Increasing the firm earnings per share is ensuring the creation of value to the stockholders. While the different structure have different risk the stockholder will manage the risk by eling the share of what they consider unbearable risk and purchase form company's they consider acceptable. So maximizing the Earning per share even at cost of icnreasing the risk the way to go from the managers.
Answer:
$ 25.71
Explanation:
The stock split means a shareholder will have 7 shares for every 2 shares they have earlier. Companies do this to reduce the trading price of their stock to a range investor considered comfortable.
the new price of the stock = 2 × 90 / 7 = $ 25.71