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
worty [1.4K]
3 years ago
11

If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.9 (using the mid-point method), what will

be the percent change in quantity demanded when the price of a used car falls from $6,000 to $4,000
Business
1 answer:
Leviafan [203]3 years ago
5 0

Answer: 36% increase in quantity demanded.

Explanation:

Price Elasticity shows the change in quantity demanded when there is a change in price.

Change in Quantity demanded = Price elasticity * Change in price.

Change in price using midpoint formula;

= \frac{New price - Old Price}{\frac{New Price + Old Price }{2} } \\\\= \frac{4,000 - 6,000}{\frac{4,000 + 6,000 }{2} } \\\\= \frac{-2,000}{5,000} \\\\= -0.4

Change in Quantity demanded = -0.9 * -0.4

= 0.36

= 36% increase

You might be interested in
Who wants free coins!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LUCKY_DIMON [66]

Answer:

MEEEEEEE

Explanation:

TYSM

3 0
2 years ago
Read 2 more answers
It's clear that the lives of many creative artists are being transformed by digital technology. But competing schools of thought
Advocard [28]

Answer and Explanation:

Artists' lives have been changed by digital technology. This has created different schools of thought such as the "winner take all" theory, which claims that delivering high quality products at low cost will create a world where small differences in talent demand large differences in reward, and the "long tail"  theory, who claims that digital technology is creating a small portion of sellers that the market will adapt to, promoting low-cost products. These two theories are effective in different realities. However, the existence of both proves the change that programming and technology has been showing in entertainment and in the market.

7 0
3 years ago
Vital Silence Corp. has just issued a 30-year callable, convertible bond with a coupon rate of 6.4 percent and annual coupon pay
Aleks04 [339]

Answer:

a. $880.74

b. 13 years

Explanation:

a.  Conversion ratio = Current Value of bond / Conversion price  = 1,000 / 93.4 = 10.71

Conversion price of bond = 10.71 × 28.60  = $306.31

Coupon = Par value of bond * Coupon rate  = $1,000 * 6.4% = $64

Present value of straight debt is calculated below:

Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]

= $64*11.93 + $117.46

= $763.28 + $117.46

= $880.74 .

Therefore, the minimum value of bond is $880.74

b. Conversion ratio = 10.71

Current stock price = $28.6

Suppose number of year the stock will take to reach above $1,140 is t.

Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t

$1,140 = $28.6 * 10.71 * (1.108)^t

(1.108)^t = 3.7218

t = 12.8145 year.

t = 13 years

8 0
2 years ago
Business ____ is an overview that describes a company's overall functions, processes, organization, products, services, customer
nirvana33 [79]

Answer: Business profile

Explanation:

Business profile is referred to as or known as the profile that is designed in order to have an overview of the organization, business and their business plan. It tends to provide the readers with quick overview of the business, also including the values and the objectives, so as they tend to get the immediate feel of what they are doing and where they are headed.

7 0
3 years ago
Organizational culture refers to: a. how a firm acquires, uses, and develops its various resources and capabilities. b. a set of
Amanda [17]

Answer:

d. the complex set of ideologies, symbols, and core values that are shared throughout the firm.

Explanation:

8 0
2 years ago
Other questions:
  • Find a mutually profitable price for this acquisition, that is, a price such that, on average or in expectation, the owners of b
    5·1 answer
  • Fiscal stimulus to aid recovery from a recession will be most effective in the long run if______________ it can be reversed as t
    7·1 answer
  • Q 6.26: Early in 2022, Baker Company switched to a JIT (just-in-time) inventory system. Financial information for the two most r
    7·1 answer
  • A zero-sum game is a situation in which an economic gain by one country results in an economic loss by another.
    15·1 answer
  • Dorothy (an audit manager) has been assigned to the audit of Tandem Electric, Inc. Dorothy is concerned that Joanne, a friend fr
    10·1 answer
  • An increase in savings __________.A. provides more funds for investment
    11·1 answer
  • What is competitive advantage and how does it relate to a company’s business mode?
    10·1 answer
  • Maya, who lives in California, just purchased her first home at a Trustee’s foreclosure sale. She was given a deed at the sale.
    12·1 answer
  • The following describes which type of bank? "Serves everyday people like you and me!"
    8·1 answer
  • Proof-of-Blank______ is a requirement to define an expensive computer calculation, also called mining, that needs to be performe
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!