Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
Answer: 15.1875
Explanation: k = 81 units L = 16 units
(81 × 3/4) × (16÷4) = 243
Q =243
APL = Q / L
243 ÷ 16 = 15.1875 units of labour
Answer:
A. $1,075,000
B. No
Explanation:
A. Calculation for the book value of the equipment
Using this formula
Book value of the equipment=Equipment account -Accumulated depreciation—equipment account
Let plug in the formula
Book value of the equipment= $3,150,000-$2,075,000
Book value of the equipment=$1,075,000
Therefore the book value of the equipment will be $1,075,000
(b) NO the balance in the accumulated depreciation account does NOT mean that the equipment's loss of value is the amount of $2,075,000.
