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Svetllana [295]
3 years ago
12

Suppose that at a price of $8, 13,600 units were sold while at a price of $6, 15,200 units were sold. Without calculating the va

lue of price elasticity of demand , can you determine whether demand is elastic, unit elastic, or inelastic between the price of $6 and the price of $8?
Business
2 answers:
HACTEHA [7]3 years ago
5 0

Answer:

Inelastic between the price of $6 and the price of $8

Explanation:

At price $8, the total expenditure ;

= price * Quantity

=$8 * 13600

=$108,800

At price $6, the total expenditure;

=$6 * 15200

=$91,200

Since the total expenditure is decreasing with a decrease in price then the elasticity of demand will be inelastic.

Doss [256]3 years ago
5 0

Answer:

Inelastic

Explanation:

The elasticity of demand is the response of consumers to a change in the price of a product (Barnier, 2020). It is calculated as the percentage change in the quantity demanded divided by the percentage change in price.  

Looking at the number of units sold at each price ($6 and $8), we can determine that the demand is inelastic. The percentage change in demand is smaller than the percentage change in price.  This means that the demand curve will be steep.

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Gremlin Industries will pay a dividend of $ 1.55 per share this year. It is expected that this dividend will grow by 7​% per yea
sasho [114]

Answer: 14%

Explanation:

We can calculate this using the Gordon Growth Model which looks like this,

P = D1 / r - g

P is the current stock price

D1 is the next dividend

r is the rate of return or the cost of capital

g is the growth rate.

We have all those figures except the cost of capital so making r the subject of the formula we can solve for it. Doing that will make the formula,

r = D/ P + g

r = 1.55 / 22.10 + 0.07

r = 0.1401

r = 14%

14% is the equity cost of capital.

If you need any clarification do react or comment.

3 0
3 years ago
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natali 33 [55]
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4 0
3 years ago
The literacy rate is ____.
Alisiya [41]

Answer: the proportion of a country's people that can read and right

Explanation:

originally literacy rate is based on the number of LITERATE persons in a give age group.

4 0
3 years ago
Bok buys an espresso machine from Coffee Gadgets, which bills him for $100. He writes out a check drawn on Dios Bank, but later,
noname [10]

Answer: d. must stop payment if the bank has a reasonable time to act.

Explanation:

Dios as a bank holds money for it's customers which means that the money is still under the ownership of the customer in question to do as they see fit.

If the customer therefore instructs them to act in a certain way with that money, they will do so provided that it is legal of course.

Bok asks Dios to stop a payment related to his own money and so they must do so if they have enough/reasonable time to do so because as their customer, he is there first priority especially in relation to his own money.

5 0
3 years ago
Trevor restores antique cars and sells them for profit. This is an example of _____ income.a.capital gains
scZoUnD [109]

Answer:

a.capital gains

Explanation:

Capital gains income -

It refers to the increase in the amount of the capital asset , where the amount received from selling the asset is more than the amount at the time of purchase , is referred to as capital gains income.

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Hence, from the given scenario of the question,

Trevor is practicing , capital gains income.

7 0
3 years ago
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