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]
3 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]3 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]3 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
List 2 ways in which constellations are used.
tangare [24]
In Ancient times, constellations were used to create and track the calendar so they knew when to plant crops and harvest them. Constellations were also used for navigation and to help sailors travel across oceans.
3 0
3 years ago
Read 2 more answers
The journal entry to record the purchase of equipment for a $140 cash down payment and a balance of $480 due in 30 days would in
Tju [1.3M]

Answer:

Option C. A debit to Equipment for $620, a credit to Cash for $140, and a credit to Accounts Payable for $480.

Explanation:

The reason is that the equipment has been acquired by the business which is worth $620 and this means that the equipment which is asset in nature must be increased by it fair value which is $620. The purchase of equipment requires the payment of $140 at the spot which means that the cash asset will be reduced by $140 and the remainder $480 will be paid in future which means that the current liabilities will be increased by $480.

Increase in Equipment (fixed asset) is debited by $620.

Decrease in Cash (asset) is credited with $140.

Increase in current liability is always credited and in this case must be credited with $480.

Journal entry in nutshell is as under:

Dr Equipment $620

Cr Cash Account          $140

Cr Accounts Payables  $480

7 0
3 years ago
Read the scenario. Alfonso is 19 years old and has a high school diploma. Recently, he was promoted to assistant manager at the
erik [133]

Answer:

He should attend classes at the local college to receive training in management.

Explanation:

Best option.

6 0
3 years ago
A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an ann
alekssr [168]

\sqrt\frac{2*773*28}{33}Answer:

Explanation:

Using the EOQ Formula =  EOQ\sqrt\frac{2*D*O}{H}

D = Demand = 773

O = Ordering Cost =28

H = holding Cost = 11*33% =3.63

So we have :

EOQ=\sqrt\frac{2*D*O}{H}

EOQ= \sqrt\frac{2*773*28}{3.63}

EOQ=\sqrt\frac{43288\\}{3.63}

EOQ= \sqrt{11925.06887}

EOQ= 109.20196

   

Previous per unit order cost = 28/773 =0.03622

No of Orders = D/o  

No of Orders = 773/109.20196 =7.0786

Cost per order =109.20196*0.03622 =3.9555

Total order cost= 7.0786*3.9555=27.9998

At EOQ holding Cost is equal to Order Cost

New Order cost =27.9998

Holding Cost = 27.9998

New cost As per EOQ = 56

Previous (33+28)  =  61

Net Saving = 5

6 0
3 years ago
Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day i
Paraphin [41]

Answer:

Correct option is (d)

Explanation:

Capacity refers to the amount of goods that a plant or organization can produce. Maximum capacity refers to the total number of goods produced at maximum efficiency.

In this case, Joe's plant could produce 1,000 items if all conditions are met, which means when the plant is at its highest efficiency. This states the maximum capacity of the plant.

7 0
2 years ago
Other questions:
  • Find the compounded amount. Assume 3.5% interest compounded daily.$2,750 deposited June 12 and withdrawn August 30
    11·1 answer
  • The marginal cost of manufacturing x yards of a certain fabric is C'(x) = 3 − 0.01x + 0.000006x2 (in dollars per yard). Find the
    9·1 answer
  • You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast f
    8·1 answer
  • S&amp;L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&amp;L purchased C
    6·1 answer
  • Is the microbial community in the intestine a key to understanding obesity? To explore this question, scientists conducted anoth
    15·1 answer
  • Big data analytics programs (analyzing massive data sets to make decisions) use gigantic computing power to quantify trends that
    9·1 answer
  • Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The compan
    15·1 answer
  • Jackson is working late at night on a project that is due the next day. he is not sure how to print his word document, and it is
    13·2 answers
  • Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and ot
    12·1 answer
  • When law-enforcement officials do not have to provide search warrants to conduct searches in highly
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!