Answer:
Percentage change in quantity= 2.3%
Explanation:
Price elasticity is define as a measure of responsiveness of quantity demanded to changes in price.
When price is highly elastic there is large change in quantity demanded to small change in price. While when it is inelastic quantity demanded is less responsive to changes in price.
Mathematically
Price elasticity= percentage change in quantity / percentage change in price.
2.3= percentage change in quantity/0.01
Percentage change in quantity= 2.3* 0.01
Percentage change in quantity= 0.023= 2.3%
Answer:
<u>supply of labor is lower than the demand</u>
<u>Explanation:</u>
Consider for example a country is in need of Doctors, and the number of available doctors is quite low than the demand; such that hospitals wanting to increase their capacity begin to offer higher wages in other to employ available doctors. This evidently will in the <em>short run</em> lead to an increase in wages and employment for new doctors.
Answer: Schlictor's operating leverage when 2000 units are sold is 3.
The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.
We can calculate operating leverage of a firm with the help of the following formula:
Substituting the values from the question we get