1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
luda_lava [24]
2 years ago
15

Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price r

ange, the absolute value of the price elasticity of demand for DVD players is
a. 0.25.
b. 0.375.
c. 1.0.
d. 2.67.
e. 4.0.
Business
1 answer:
Nataly_w [17]2 years ago
6 0

Answer:

Option D.

Explanation:

Given information:

Q_1=200, Q_2=400

P_1=225, P_2=175

Formula for price elasticity of demand is

E_d=\frac{Q_2-Q_1}{P_2-P_1}\times \frac{P_1+P_2}{Q_1+Q_2}

Substitute the given values in the above formula.

E_d=\frac{400-200}{175-225}\times \frac{225+175}{200+400}

E_d=\frac{200}{-50}\times \frac{400}{600}

E_d=-\frac{8}{3}

E_d\approx -2.67

Absolute value is

|E_d|= |-2.67|=2.67

The absolute value of the price elasticity of demand for DVD players is 2.67.

Therefore, the correct option is D.

You might be interested in
Which of the following policies should a country implement in an economic downturn to avoid a Paradox of Thrift?
zalisa [80]

Answer:

B)  Implement policies to encourage greater consumption.

Explanation:

The Paradox of thrift says that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving due to that total saving may fall because of individuals' attempts to increase their saving, Therefore, to avoid the paradox of thrift policies to encourage consumption must be implemented.

5 0
3 years ago
2. An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 millio
tankabanditka [31]

Answer:

A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times

B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million

C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million

Explanation:

Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.

Download pdf
6 0
2 years ago
[The following information applies to the questions displayed below.]
gavmur [86]

Answer:

sup

Explanation:

i know

3 0
2 years ago
Adding a new product line to an existing portfolio means that the line has​ __________________. A. increased product support ser
OLEGan [10]

Answer:

<u>B. extended product line length</u>

Explanation:

  • The product line is a pricing strategy refers to as the pricing line extension and its purpose is to attract new customers, who may or may not be familiar with the current standard product line.
  • Thus It adds a higher quality to the current products, considered as trading and forward stretch. Various features include the price lining, bundle pricing, bait pricing, leader pricing.
  • Supermarkets like Walmart and amazon can often apply stretch top product lines so s to often grade there products to ensure that all markets are covered as to gain the maximum interest from customers.
7 0
3 years ago
What does deficit spending require a government to do?
Kruka [31]

Answer:

c. TAKE ON DEBT

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • Saskatchewan Forestry Company purchased a timber tract for $225,000 and estimates that it will be depleted evenly over its 10-ye
    15·1 answer
  • Marvin loves chocolate truffles. as the price of a chocolate truffle increases from $1 to $2 to $3, marvin continues to buy a do
    9·1 answer
  • Explain the following statement: Marketing is more than just promotion.
    5·2 answers
  • According to Maslow's hierarchy of needs theory, esteem needs:
    11·1 answer
  • Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00
    13·2 answers
  • Price discrimination is the practice of charging different prices for the same product that are not justified by cost difference
    8·1 answer
  • Based on Roberts and Schlenker​ (forthcoming), the corn demand elasticity is ε =0.3​, and the supply elasticity is eη= 0.15. Acc
    15·1 answer
  • Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government
    13·1 answer
  • Freee brain hecbahvjserw bverwhjbvfsv
    14·2 answers
  • Calculate the federal government's share of total output in 1993, 2003, and 2013.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!