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Alekssandra [29.7K]
3 years ago
15

When demand is inelastic and price is decreased:

Business
1 answer:
REY [17]3 years ago
6 0

Answer:

The correct answer is letter "C": the effect of the decrease in price on total revenue dominates the effect of the increase in quantity demanded on total revenue; overall total revenue declines.

Explanation:

Goods or services have inelastic demand when changes in prices do not affect their quantity demanded. If prices decrease or increase, the quantity demanded will remain at the same level or the change will be so minimal that it is not perceived. It is said then that <em>the decrease in price dominates the effect of the changes in quantity demanded. </em>

However, <em>if prices decrease and the quantity demanded remains the same, the company's overall revenue will decrease.</em>

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Protecting intellectual property rights is important to a free enterprise system because:
ra1l [238]

Answer:

B. it allows entrepreneurs to profit from their ideas.

Explanation:

Intellectual properties are valuable ideas, innovations, and creations to a business. They are intangible assets that give a business its competitive advantage. Protecting intellectual properties ensure an individual or entity reaps the full benefits of the inventions and creations.

Protecting intellectual properties safeguards a company's ideas from being exploited by its competitors for commercial gains. It gives a business the right to exclusively profits from its innovations. Protecting intellectual properties encourages research and development as entrepreneurs are guaranteed to benefit from their creations.

5 0
3 years ago
2. A series of five constant dollar (or real-dollar) payments, beginning with $6,000 at the end of the first year, are increasin
Komok [63]

Answer:

The equivalent present worth of the series is $27,211.16.

Explanation:

The first thing to do is to calculate the real interest using the following formula:

1 + i = (1 + r)(1 + inf) ..................... (1)

Where;

i = market interest rate = 11%, or 0.11

r = real interest rate = ?

inf = average general inflation rate = 4%, or 0.04

Substituting the values into equation (1) and solve for r, we have:

1 + 0.11 = (1 + r)(1 + 0.04)

1 + r = 1.11 / 1.04

1 + r = 1.06730769230769

r =  1.06730769230769 – 1

r = 0.06730769230769

The equivalent present worth of the series can now be calculated using the formula for calculating the present value (PV) of a growing annuity as follows:

PVga = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (2)

Where;

PVga = present value of a growing annuity or equivalent present worth of the series = ?

P = constant dollar (or real-dollar) payments = $6,000

r = real interest rate = 0.06730769230769

g = growth rate of payments = 5%, or 0.05

n = number of years = 5

Substituting the values into equation (2), we have:

PVga = (6000 / (0.06730769230769 - 0.05)) * (1 - ((1 + 0.05) / (1 + 0.06730769230769))^5)

PVga = 346,666.666666712 * 0.078493722845371

PVga = $27,211.16

Therefore, the equivalent present worth of the series is $27,211.16.

8 0
3 years ago
Lilly's team had trouble keeping up with all the changes being made to the
zvonat [6]

C, personal productivity

4 0
3 years ago
Read 2 more answers
Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return
tekilochka [14]

Answer:

PV= $12,111.93 = $12,112

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Interest rate (i)= 8.75% = 0.0875

Number of periods (n)= 30

<u>To calculate the present value (PV), we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 150,000 / (1.0875^30)

PV= $12,111.93

4 0
2 years ago
Anyone who is at least 18 years old, a citizen of the United States, and a legal resident may vote in an election. To become a s
wlad13 [49]
I think what can be inferred is that each role has a different age scale and different requirements to become said role
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3 years ago
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