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
Korvikt [17]
2 years ago
11

Month Income Price Coke Price Pepsi Q^D Coke Q^D Pepsi

Business
1 answer:
hodyreva [135]2 years ago
5 0

Answer:

midpoint method for income elasticity of demand = {ΔQD / [(QD₀ + QD₁)/2]} / {ΔI / [(I₀ + I₁)/2]}

midpoint method for price elasticity of demand = {ΔQD / [(QD₀ + QD₁)/2]} / {ΔP / [(P₀ + P₁)/2]}

a) I will use the information from January and February to calculate the price elasticity of demand of Coke. I cannot use March instead of January because income increased during that month.

QD₀ = 14

QD₁ = 10

P₀ = 2.40

P₁ = 3

PED = {(10 - 14) / [(14 + 10)/2]} / {(3 - 2.4) / [(3 + 2.4)/2]}

PED = {-4 / 12} / {0.6 / 2.7} = -0.3333 / 0.2222 = -1.5 or |1.5| in absolute terms

Coke's PED is elastic since a 1% change in price will result in a larger proportional change in the quantity demanded.

b) I will use the information from January and March to calculate the income elasticity of demand of Coke. These are the two months where income changes but price of Coke remains the same.

QD₀ = 14

QD₁ = 20

I₀ = 300

I₁ = 500

PED = {(20 - 14) / [(14 + 20)/2]} / {(500 - 300) / [(300 + 500)/2]}

PED = {6 / 17} / {200 / 400} = 0.3529 / 0.5 = 0.71

Coke's IED is positive, therefore, Coke is a normal good.

You might be interested in
Madison Company issued an interest-bearing note payable with a face amount of $30,000 and a stated interest rate of 8% to the Me
kondaur [170]

Answer:

zero

Explanation:

It will be Zero. Because its not an operating activity. It will come under Finance activity in the cash flow of Madison company .

5 0
3 years ago
During the​ year, credit sales were​ $820,000. Cash collected on credit sales was​ $750,000, and​ $15,000 was written off. Smoot
KengaRu [80]

Answer:

$37,000

Explanation:

The computation of the bad debt expense is shown below:

= Amount estimated as uncollectible + written off amount - credit balance of allowance for bad debts

= $28,000 + $15,000 - $6,000

= $37,000

We simply applied the above formula to determine the bad debt expense. Hence, all other information which is given is not relevant therefore, ignored it  

3 0
3 years ago
Tony works at an auto assembly plant for a U.S. auto manufacturer. He manages a group of employees who measure the quality of pa
Pani-rosa [81]

Answer:

The correct answer is:  supply chain management.

Explanation:

Supply chain management is the cumulative network of people, entities, activities, information, and resources involved in moving raw materials, components and finished products from original suppliers to end-users. Supply chain management is crucial for most companies and can involve hundreds of links at large corporations, thus it requires considerable skill and expertise.

7 0
3 years ago
Marco predicts he will have $18,750 in expenses for one year of college. He expects to receive $3,450 in grants annually. How mu
Rzqust [24]
7650 would be the ansawer 

7 0
3 years ago
Read 2 more answers
Which factor can be a barrier to a person applying for a job as a cook at a fast-food restaurant?
Marrrta [24]
The answer is d i think
7 0
3 years ago
Other questions:
  • Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an ini
    11·1 answer
  • Which payment method typically charges the highest interest rate
    10·1 answer
  • Which of the following statements is correct?
    5·1 answer
  • Which of the following is a way to buy stocks ?
    14·2 answers
  • Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $4.00. The smallest amou
    14·2 answers
  • ACNielsen conducts weekly surveys of television viewing throughout the United States. The ACNielsen statistical ratings indicate
    15·1 answer
  • This Venn diagram compares two career pathways in the Marketing, Sales, and Service career cluster.
    15·2 answers
  • Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,0
    10·1 answer
  • • Define the mergers and acquisitions of Tesla and define what has the company gained?
    6·1 answer
  • On January 4, David Company acquired all of the net assets (assets and liabilities) of William Company for $ 145,000 cash. The t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!