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
Y_Kistochka [10]
2 years ago
14

A manufacturer produces 400 units when the market price is $10 per unit and produces 600 units when the market price is $12 per

unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about:
A. 0.45.
B. 2.0.
C. 2.2.
D. 200.
Business
2 answers:
vodka [1.7K]2 years ago
5 0

Answer:

C. 2.2.

Explanation:

Mid point elasticity is calculated as follows:

<em>% change in qty supplied/ % change in price</em>

<em />

<em>% change in qty supplied</em>

= (600-400)/(600+400)/2

= 0.4

<em> % change in price </em>

= (12 -10)/(12+10)/2

= 0.181

Mid point elasticity

= 0.4/0.18

=2.2

             

Olegator [25]2 years ago
3 0

Answer: C. 2.20

Explanation:

Given the folliwing

At price(P1) = $10 per unit,

Quantity produced(Q1) = 400 units

When price(P2) = $12,

Quantity produced(Q2) = 600 units

The price elasticity of supply is used to determine how quantity supplied is affected by changes in the price of a commodity.

The midpoint method of determining price elasticity of supply :

(Percentage change in quantity supplied ÷ percentage change in price)

[(Q2-Q1) ÷((Q2+Q1)/2) ÷ (P2-P1)÷((P2+P1)/2)]

Percentage Change in quantity supplied = [(600-400)/(600+400)/2)] =200/500 = 0.4

Percentage change in price = [(12-10)/(12+10)/2]

= 2/11 = 0.1818

Therefore, price elasticity of supply = (0.4 ÷ 0.1818) = 2.20

You might be interested in
As Bart Brownlee approached retirement, he decided the time had come to invest some of his nest egg in a conservative fund. He c
Serga [27]

Answer:

$1,275

Explanation:

The computation of the amount of commission for paying is shown below:

= Invested amount × fund charges a load percentage

= $30,000 × 4.25%

= $1,275

By multiplying the invested amount with the fund charges a load percentage we can easily calculate the amount of commission and the same is to be considered

8 0
2 years ago
The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified ti
kvasek [131]

Answer:

The gross domestic product

Explanation:

The gross domestic product = Consumption spending + Investment + Government Spending + Net Export

8 0
3 years ago
The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the
irinina [24]

Answer:

$87 million

Explanation:

The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

Service cost for the year =  $10 million

Interest =  Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

Benefits paid paid by trustees = $6 million

The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million

6 0
2 years ago
Why is the supply curve a vertical line
AlladinOne [14]
In some cases, supply curves are vertical, which means that for any price from 0 up to infinity, the quantity will stay the same.

This is very true for supply of an authentic painting in auctions, where there may only be 1 single painting, and people state the highest price they are willing to pay for the painting. Regardless of the price, there will only be 1 authentic painting for that price.

Hope this helps! :)
5 0
3 years ago
What are the requirements for entering the military after high school?
mel-nik [20]

- Citizenship.

- Age Limits. Enlist at 17 with parental consent, or 18 or older without. ...

- Education and Testing. High school diploma or. ...

- Health and Fitness. Pass a physical exam and meet weight limits. ...

- Contact a Recruiter. ...

- Report to MEPS. ...

- Await Orders for Basic Training.

More info can be found at https://www.usa.gov/join-military

8 0
3 years ago
Read 2 more answers
Other questions:
  • Rose decides she wants to begin her own business, marketing toward online game players. Which of the following best answers the
    15·1 answer
  • On January 2, 20X4, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, 20X24. The bonds were issued
    9·1 answer
  • Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by
    11·1 answer
  • Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines
    15·1 answer
  • For a certain product, the cost function is linear with fixed costs of $480. If the product will sell for $25 per unit and the b
    13·1 answer
  • A girl is given $15 by her parents. She has two options of how to spend the money. She can either save the money for future purc
    8·1 answer
  • Items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items a
    14·1 answer
  • What should you do if a package is stolen from your doorstep?
    13·2 answers
  • Explain why socialist societies do not use a circular flow chart.
    12·1 answer
  • An oligopoly firm is similar to a monopolistically competitive firm in that A) both firms face the prisoner's dilemma. B) both o
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!