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luda_lava [24]
3 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]3 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.

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Best Regards.

3 0
3 years ago
What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discoun
navik [9.2K]

Answer:

= $356.85

Explanation:

Here's the complete question :

What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discount rate is 9%

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year in year 0 and 1 = 0

Cash flow each year from year 2 to 6 = $100

I = 9%

PV = $356.85

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
You and a friend are putting together a film on a very small budget. the script takes place in the 1970s, but you don't have muc
myrzilka [38]

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<span>1. </span><span>It would first help to have actors that already look like they belong in the 1970’s. Having the authentic look can help sell the costumes even more. </span>

<span>2.</span> Relying on second-<span> hand/low-budget vintage stores would be the way to go.</span>

<span>3. </span><span>Go to a Fabric store or some place online and order fabric to create, If there were a piece that couldn’t be find and needed in the film.</span>





7 0
3 years ago
The term ____ refers to tangible choices such as - in the case of a new venture - investing in research and development for new
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8 0
3 years ago
ABC, Inc., has $120,000 U.S.-source income, $80,000 of foreign source income, and $25,000 foreign taxes deemed paid. Assume that
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Answer:

B) $24,500

Explanation:

ABC's foreign tax credit should be $25,000, but there is a foreign tax credit limitation that it cannot exceed, that limitation would be:

[foreign income / (domestic income + foreign income)] x domestic tax liability

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6 0
3 years ago
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