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
serg [7]
3 years ago
9

A car dealer wants to get rid of the stock of last year's model. Assume that the dealer knows from past experience that the pric

e elasticity of demand for cars is unitary (= 1). If the price of the cars is currently $20,000 and the dealer wants to increase the quantity demanded from 30 units to 50 units, what must the new price be if the dealer is to sell the 20 additional cars?
Business
2 answers:
Pie3 years ago
7 0

Answer: $6,600

Explanation: According to the question, The price elasticity of demand for cars is unitary meaning that any percentage increase or decrease in price of a product will give an equal increase or decrease in the demand for the product.

If cars are sold at $20,000 and current sales is 30 units. To increase the quantity sold to 50 units, there must be a price reduction.

what percentage of increase in quantity to be sold do we have? 50 - 30 = 20

20/30 = 66.67 appx 67%

Meaning that a 67% decrease in price of the car will give an equal 67% increase in sales quantity.

The new price of the car will be $20,000 * 67% = $13,400

new price = $20,000 - $13,400 = $6,600

horrorfan [7]3 years ago
4 0

Answer: The answer is $6,600

Explanation:

The unitary elasticity of demand means that the quantity and price must change in the same proportion .

Using the formula

Old quantity - New quantity / Old quantity × 100%

Old quantity = 30 units, New quantity = 50units

30 - 50 / 30 × 100%

-20/30 × 100%

= -0.666 × 100 ignore the minus sign)

= 67% approximately

The percentage change in cars is 67%

0.67 × 20,000 = 13,400

Therefore the new price is

20,000 - 13,400

= 6,600

Therefore the new price is $6,600

You might be interested in
Khfhggjjv,gkjbmmjhbb.l
loris [4]

Answer: um i need you to ask the question so we can answer it

Explanation:

5 0
3 years ago
True or False. Within an Agent Handler group, if the handler with the highest priority is unavailable, the agent will fall back
Elodia [21]

Answer:

True

Explanation:

Given that, according to Configuring ePolicy Orchestrator of Agent Handlers Group, Handler priority helps to inform the agents which handler to approach with first.

However, in situations whereby the handler with the highest priority is unavailable, the agent falls back to the next handler in the list.

Hence, in a situation like this, the correct answer is TRUE

4 0
3 years ago
Connie, a single mother and home-business entrepreneur, enjoys running her own business. However, because she is busy balancing
VladimirAG [237]

Connie can best be described as Solo Operator type of entrepreneur.

Explanation:

Connie is a single mother who works from home on her small business which is her primary source of income but is ridden by the work of house and work which makes her unable to expand her business as she cannot invest enough time in it.

This is happening because she is a sole operator as in she has to take all the decisions and do all the work by herself with no additional help from anyone else whatsoever in the family or the work front either.

7 0
3 years ago
abbie is an unmarried individual who earned a gross income of $74827 last year. she make $3839.31 in ira contributions, donated
musickatia [10]
42,750 = gross income standard deduction reduces your taxable income - 5700.00 exemption acts like a tax deduction, reducing taxable income - 3650.00 IRA contributions are tax deductible - 537.56 donating to charity is tax deductible - 918 mortgage interest payments are tax deductible - 1351.35 income NOT taxable - 5700 + 3650 + 537.56 + 918 + 1351.35 = 12,156.91. 42,750.00 - 12,156.91 = 30,593.09 <---taxable income I think I did this correctly, but just in case, you might want to get a second opinion :)
8 0
3 years ago
The republican party has used both the _____ and the eagle to identify itself.
ASHA 777 [7]
<span>The Republican Party currently uses the Elephant as a symbol to represent itself. This started in the 1870s when the political cartoonist Thomas Nast used it opposite a Donkey for the Democratic Party.</span>
5 0
3 years ago
Other questions:
  • A business that received a grant would not have to repay that money. True or False?
    11·2 answers
  • Suppose that the economy enters into a recession and​ that, as a​ result, Rusty Z. Wrench loses his job as a delivery truck mech
    6·1 answer
  • What countries are Canada’s top ten service import partners?
    5·1 answer
  • A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the yea
    9·1 answer
  • Why shouldn’t applicants to job openings send their cover letter as an attachment in an e-mail? When would it be acceptable to s
    5·1 answer
  • Corner Jewelers, Inc. recently analyzed the project whose cash flows are shown below. However, before the company decided to acc
    8·1 answer
  • When two or more people share an account it is called a joint account. True or false
    5·1 answer
  • For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
    12·1 answer
  • Albo Corporation and Black Corporation are identical in every way except their capital structures. Albo Corporation, an all-equi
    6·1 answer
  • A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per uni
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!