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pantera1 [17]
3 years ago
9

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 unit

s, then, according to the midpoint formula, the value of price elasticity of demand (ignoring absolute value) is___________.
Business
1 answer:
Ksenya-84 [330]3 years ago
7 0

Answer:

-0.33

Explanation:

The calculation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 80 units - 100 units

= -20 units

And, the average of quantity demanded would be

= (80 units + 100 units) ÷ 2

= 90 units

Change in price is

= P2 - P1

= $2 - $1

= 1

And, the average of the price is

= ($2 + $1) ÷ 2

= 1.5

So, after solving this, the price elasticity of demand is -0.33

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Answer:

Accumulated depreciation= $7,272

Explanation:

Giving the following information:

Purchased: January 1, 2014, at a cash cost of $23,000.

The estimated useful life is 10 years.

The estimated residual value is $2,800.

Under the double-declining balance, we need to use the following formula for each year:

Annual depreciation= 2*[(book value)/estimated life (years)]

2014= [(23,000 - 2,800)/10]*2= 4,040

2015= [(20,200 - 4,040)/10]*2= 3,232

Accumulated depreciation= $7,272

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Robo Hot Inc., is a company that markets electric heaters to hospitals. Mr. Heatmizer, it's CEO, would ike to reduce its invento
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Answer:

Expected number of orders=31.6 orders per year

Explanation:

<em>The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).</em>

<em>The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.</em>

It is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units

Number of orders = Annual Demand/EOQ

                              = 100,000/3,162.27= 31.62 orders

Expected number of orders=31.6 orders per year

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Answer:

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Explanation:

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Answer: Price, Product, Promotion and Place.

Explanation:

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On December 31, 2020, the Bennett Company had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the compan
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Answer:

$5.31

Explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

<em>where,</em>

<u>Earnings Attributable to Holders of Common Stock is :</u>

Net Income                                                                       $650,000

Less Preference Stock dividend                                       ($71,000)

Earnings Attributable to Holders of Common Stock      $579,000

<em>and</em>

<u>Weighted Average Number of Common Stocks Outstanding :</u>

Common Stocks at Beginning outstanding                                  100,000

Stocks Sold at Weighted Average (18,000 / 2)                                9,000

Weighted Average Number of Common Stocks Outstanding    109,000

therefore,

Earnings per share = $579,000 ÷  109,000

                                = $5.31

The 2021 basic earnings per share is $5.31.

4 0
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