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
Alexandra [31]
3 years ago
9

Suppose that over one range of​ prices, the absolute value of the price elasticity of demand varies from 15.0 to​ 2.5, and over

another range of​ prices, the absolute value of the price elasticity of demand varies from 1.5 to 0.75. What can you say about total revenue and the total revenue curve over these two ranges of the demand curve as price​ falls?
Business
1 answer:
Vera_Pavlovna [14]3 years ago
5 0

Answer:

In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.

e.g. price = $100, quantity demanded = 100, total revenue = $10,000

  • price falls to $99, quantity demanded increases to 115, total revenue = $11,385
  • price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50

On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.

e.g. price = $100, quantity demanded = 100, total revenue = $10,000

  • price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
  • price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
You might be interested in
In response to an upturn in the economy, entrepreneurs seek to expand their businesses. a. What will happen to nominal interest
kicyunya [14]

a. Nominal interest rates Increase and Aggregate demand Decrease

b. New Fed policy Buy bonds

Explanation:

When contemplating unemployment, the nominal interest rate applies to the rate of interest. Net may, without taking into consideration any commissions or compounded interest, be related to the advertised or reported interest rate of a loan.

The aggregate demand (AD) for finished commodities and facilities in the market at a certain time is aggregated. Strong demand is often named, but this term is often used in many ways. This is the market for a country's gross national product.

When the Fed sells debt in the international market, the world economy money supply is expanded by exchanging debt for cash from the general public. Instead, when the Fed sell bonds, the supply of money is reduced by cash being pulled out of the market in return for bonds. The Fed also sells bonds.

7 0
3 years ago
An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she
Mazyrski [523]
D. Accounting loss but not an economic loss
6 0
2 years ago
Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $64,000, and Martin's capital balance $61,000.
antoniya [11.8K]

Answer:$0

Explanation:

Because because Black must actually grant a bonus to Hewlett and Martin

6 0
3 years ago
Kristi's Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this tr
loris [4]
Debit Accounts Receivable $5,000; credit Tile Sales $5,000
4 0
3 years ago
Read 2 more answers
Gdp includes the value of all select one:
baherus [9]
The correct answer is A.

GDP consists of all FINAL goods and services, and the only way it can be measured is through market prices.
5 0
3 years ago
Other questions:
  • Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the
    8·2 answers
  • the equity of the corporation, a measure of the value of its assets less debt, is estimated to be 200000. linda forgoes a return
    10·1 answer
  • In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes bac
    11·1 answer
  • In the table above the output level where the price minus atc (average total cost) is a maximum (or least negative) is the maxim
    9·1 answer
  • A consumer is 20 years old and expects to live to age 80. He has a current wealth of $100,000, an annual income of $100,000, and
    15·1 answer
  • The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance i
    11·1 answer
  • Trails End Vacations has a $2,200 account receivable from the Sun City Kiwanis. On March 11, the Kiwanis makes a partial payment
    12·1 answer
  • During the initial Forming stage, where new team members are excited yet concerned that the project work might be difficult, the
    9·1 answer
  • Select the correct answer
    13·1 answer
  • At willow financial consulting, employees are allowed to choose what time they start each workday, as long as they arrive betwee
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!