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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

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Answer:

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From this economic practice, we can overcome from the problem of scarce resources.

8 0
3 years ago
XYZ Inc. brings together specialists from production, marketing, and finance from around the world, and gives each such team the
koban [17]

Answer:

Cross- functional team

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Cross- functional team, is the team which is defined as the group of people who came together with the different functional expertise of working against the common goal.

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It occurs when the specialist from different areas are put on the same team. So, in this case, XYZ bring together the specialist, which implies that the firm is creating the team of cross- function.

6 0
3 years ago
Which action will be least helpful if you’ve been the victim of identity theft?
lina2011 [118]

<u>Ordering your latest credit report</u> is the action that appeared to be the least helpful if you’ve been the victim of identity theft. Therefore, <u>the correct answer is D. </u>

If anyone has been a victim of identity theft, then it is important for such a person to officially report or contact any of the credit reporting companies to place a fraud alert on their credit report.

<h2>Further Explanation</h2>

Identity theft is when someone intentionally steals your information and uses such information without taking your permission. In the US, identity theft has become a booming business for fraudsters

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If you are a victim of identity theft, there are things you do immediately.

Some of the steps you can take to prevent an identity thief to further commit fraud with your details include

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LEARN MORE:

  • Which action will be least helpful if you've been the victim of identity theft  brainly.com/question/1359436
  • Which action will be least helpful if you’ve been the victim of identity theft brainly.com/question/3968427

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5 0
3 years ago
Read 2 more answers
The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/20
salantis [7]

Answer:

17 million

Explanation:

The computation of the outstanding common shares is shown below:

= Number of common shares outstanding - treasury common stock

where,

Number of common shares outstanding = Total value of the common shares ÷ par value of the share

=  $105 million ÷ $5

= 21 million

And, the  treasury common stock is 4 million

Now put these values to the above formula  

So, the value would equal to

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= 17 million

6 0
3 years ago
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Sholpan [36]

Answer:

The correct answer is (B)

Explanation:

Economists are helpful to predict future economic and financial phenomenon’s.  In that regard, statistical or mathematical models are considered more appropriate and it is said that they provide better results. In the above scenario, Syd is attempting to construct an economic model for that, the suitable technique to examine the cause and effect to predict the outcomes are mathematical functions. The reason is that mathematical models are more appropriate to predicts cause and effect.

8 0
3 years ago
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