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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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Your neighbors have offered to pay you to look after their dog while they are on vacation. It will take you one hour per day to
love history [14]

Answer:

C the value you place on one hour of leisure

Explanation:

Here are the options to this question:

OA $15, because overtime wages are generally 1.5 times your regular wage when you work more than eight hours a day OB. $10, because that is your opportunity cost of one hour of work OC the value you place on one hour of leisure OD. zero, because your regular job is not available for more than eight hours per day

Caring for the dog won't interfere with my job as I can care for the dog either before or after work.

What I would be sacrificing to care for the dog would be the time I would have spent resting or doing leisure activities. So the least amount I should charge is the value i place on one hour of leisure.

I hope my answer helps you

8 0
3 years ago
Which statement best describes the performance of mutual funds over the last 4 or 5 decades? A. While some mutual fund managers
madam [21]

The correct option is (d).

  • Choosing the best mutual funds by comparing performance of mutual funds against a benchmark index.
  • Money market funds, bond funds, stock funds, and target date funds are the four primary categories into which most mutual funds fit.
  • Each variety has unique characteristics, dangers, and benefits.
  • The rate of return is subtracted from the risk-free rate of return for the investment, and the result is divided by the return on investment's standard deviation.
  • The Sharpe ratio tells investors if an investment's results are the result of prudent investing decisions or an outcome with excessive risk.

Learn more about mutual funds performance brainly.com/question/9000802

#SPJ4

7 0
2 years ago
The number of employed persons plus the number of unemployed persons equals the number of persons Group of answer choices
andreyandreev [35.5K]

Answer:

In the Labour force

Explanation:

Labour force is calculated by adding the number of employed and unemployed people in an economy.

5 0
2 years ago
SME Company has a debt-equity ratio of .60. Return on assets is 7.5 percent, and total equity is $486,000. a. What is the equity
polet [3.4K]

Answer:Equity multiplier=1.6

Explanation:

Debt equity ratio is given as  debt/equity , Therefore

Debt  = Debt equity ratio  X Equity

=0.60 x $486,000

= $291,600

The  Total assets given as Liability(debt+equity)  will now be

=$291,600+$486,000

=$777,600.

Therefore Equity multiplier, Total assets/Total equity

=(777,600/486,000)=1.6

7 0
3 years ago
A local bank is running the following advertisement in the​ newspaper: "For just $ $2,000 we will pay you $140 ​forever!" The fi
Neko [114]

Answer:

6.56%

Explanation:

Given:

The amount paid to the bank = $2,000

Let the interest rate paid be 'r'

By compound interest ,

After 1 year the paid amount will be $2000 × ( 1 + r )

Now,

the bank is paying $140 every year

thus,

2000 × ( 1 + r ) = \frac{\textup{140}}{\textup{r}}

or

2000r + 2000r² = 140

on solving the above quadratic equation, we get

r = 0.0656

or

r = 6.56%

Hence,

interest rate the bank advertising = 6.56%

6 0
3 years ago
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