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natita [175]
4 years ago
9

If the price elasticity of demand for a product is |-2|, this implies that Group of answer choices if the price increases by 2 p

ercent, the quantity demanded will decrease by 1 percent. the change in quantity demanded divided by the change in price is equal to 2. if the price increases by $1, the quantity demanded will decrease by 2 units. if the price increases by 1 percent, the quantity demanded will decrease by 2 percent. if the price increases 1 unit, the quantity demanded will decrease by 2 units.
Business
1 answer:
AleksandrR [38]4 years ago
7 0

Answer:

if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.

Explanation:

As we know that

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

Since the price elasticity of demand is -2 that means the price is increased and the quantity demanded is decreased

The price would be increased by 1% and the quantity demanded would be decreased by 2% because of this, the price elasticity would be negative

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Suppose that when the price of a certain commodity is p dollars per unit, then x hundred units will be purchased by consumers, w
Nataly_w [17]

Answer:

Profit = TR- TC
= x (P) - C(x)
= x(-0.05x+38) - (0.02x^{2} + 3x + 574.77)
= -0.05x^{2} + 38x - 0.02x^{2} - 3x - 574.77
= -0.07x^{2} + 35x -574.77

This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at

x= -\frac{B}{2A}  = -\frac{35}{2 (-0.07)}  = 250

Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is

P(250)=3800.23 hundred dollars

b. Profits are maximised at x=250 hundred units. The per unit price at this is,

p= -0.05x + 38&#10;= -0.05 (250) + 38&#10;= $25.5


7 0
3 years ago
Tar Heel Blue, Inc. has a beta of 1.8 and a standard deviation of 28%. The risk free rate is 1.5% and the market expected return
Ivan

Answer:

12.84

Explanation:

In this question, we use the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 1.5% + 1.80 × (7.8% - 1.5%)

= 1.5% + 1.80 × 6.3%

= 1.5% + 11.34%

= 12.84

Since the standard deviation is not relevant. Hence, ignored it

8 0
3 years ago
A tariff that shifts some of the deadweight losses to the exporting country is
Anestetic [448]
Is a shift with no giving trades and nothing like that. Hope this helped. Have a great day! :D
4 0
3 years ago
1) Banks hold excess and secondary reserves to
o-na [289]
1) Banks hold excess and secondary reserves toA) reduce the interest-rate risk problem.


2) Which of the following statements most accurately describes the task of bank asset management?
b. Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.

3) The goals of bank asset management include
d. purchasing securities with high returns and low risk.

Hope this helps. Have a nice day.
6 0
3 years ago
The president of Nash Company is considering a proposal by the factory manager for the purchase of a machine for $72,500. The us
n200080 [17]

Answer:

B. $2,190

Explanation:

Calculation for the net present value of the proposal

Using this formula

Net present value=(Annual cash flow×Discounted present value)- Machine purchase amount

Let plug in the formula

Net present value=($14,000 ×5.335)-$72,500

Net present value=$74,690-$72,500

Net present value= $2,190

Therefore the Net present value will be $2,190

6 0
3 years ago
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