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eimsori [14]
3 years ago
9

If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demanded of that product, will anot

her 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded?
Business
1 answer:
Bad White [126]3 years ago
8 0

Answer:

No

Explanation:

to determine if another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded, we have to determine the price elasticity of demand.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

8% / 10% = 0.8

demand in inelastic so a 10% reduction in price would lead to a less than 8% change in quantity demanded  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

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Answer:

less expansive

Explanation:

i took the test. i got it right

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dar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales o
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Answer:

.................................................................................................

Particulars                              Unit cost       Amount

Sales income                         $ 47            $ 376,000      

Less: Variable cost                $ 24           $ 192,000

---------------------------------------------------------------------------

Contribution Margin             $ 13           $ 184,000

Less: Fixed cost                                        $ 124,000

---------------------------------------------------------------------------

Net income                                                $ 60,000

...................................................................................................

Explanation:

Given:

Unit selling price = $ 47

Variable cost = $ 24

Total monthly fixed cost = $ 124,000

Number of units sold = 8,000

CVP income statement for Cedar Grove Industries for the month of May is as:

.................................................................................................

Particulars                              Unit cost       Amount

Sales income                         $ 47            $ 376,000      

Less: Variable cost                $ 24           $ 192,000

---------------------------------------------------------------------------

Contribution Margin             $ 13           $ 184,000

Less: Fixed cost                                        $ 124,000

---------------------------------------------------------------------------

Net income                                               $ 60,000

...................................................................................................

here, the amount is for the total unit i.e 8000 units multiplied by the unit cost

8 0
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Retain the small predictable layers of risk and transfer the unpredictable catastrophic layer of risk. Does this statement promo
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7 0
3 years ago
Pros and cons on outdoor advertising
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If I'm correct-- by outdoor advertising do you mean commercials and ads encouraging people to go outside?
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