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Mashcka [7]
3 years ago
11

Suppose the number of firms you compete with has recently increased. You estimated that as a result of the increased competition

, the demand elasticity has increased from –2 to –3, i.e., you face more elastic demand. You are currently charging $10 for your product. If demand elasticity is -3, you should charge [x].
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer and Explanation:

An increase in the number of firms increases the demand elasticity. As the demand elasticity increases from 2 to 3 it means you could encounter less demand if product prices are increased. At a demand elasticity of -3, it is regarded as inelastic demand and a change in price will not affect the demand for the product as customers are still likely to patronize the product example gasoline. Due to its high demand, an increase in price will not readily affect the demand for it. Therefore if you are to change the price from $10 at 2 to 3 demand elasticity increase, the percentage of increase from 2 to 3 is given as.

3-2/2 X 100 = 50%

The new charge (x) at -3 demand elasticity = 50%/3 = 0.66666666

The increase in the new charge is therefore $10 + $10x = $10 + $10(0.166666) = $11.67

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babymother [125]

The correct Option is D. OLAP is an example of a Predictive type of analytics.

Analytics is the systematic computational evaluation of statistics or information. it is used for the discovery, interpretation, and conversation of significant styles in statistics. It additionally involves making use of facts styles toward effective decision-making. it is able to be precious in areas rich with recorded statistics; analytics relies on the simultaneous utility of information, laptop programming, and operations research to quantify overall performance.

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5 0
1 year ago
On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
shusha [124]

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0
4 years ago
Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a sys
Veseljchak [2.6K]

Answer:

latter, latter

Explanation:

Property rights system determine how economic resources are used and owned by individuals, associations, collectives, or governments.

It also includes intellectual property such as inventions or ideas.

Such rights reduce destructive competition for control of economic resources. and replace this competition by peaceful means.

In a system where people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds, we should expect more entrepreneurship under the <u>latter</u> system and faster real economic growth under the <u>latter</u> system.

8 0
3 years ago
How is knowing one's own credit score important in avoiding predatory scams
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You can tell the difference because your credit score can decrease if you try to check it  it may decrease everyday
4 0
3 years ago
A. 17.2, B. 15.12 C.12% D. 18.7%
loris [4]

Answer:

Option (B) is correct.

Explanation:

Cost of Equity (Ke) = Rf + Beta ( Rp)

where,

Rf = risk free rate

Rp = Market risk premium

Hence,

Beta systematic risk :

= 7% + 1.7 (6%)

= 7% + 10.2%

= 17.2%

Post Tax cost of debt:

=  Kd ( 1 - T)

where,

Kd = cost of debt

T = tax rate

= 20% * (1-0.4)

= 12%

WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]

where,

We = weight of equity

Wd = weight of debt

             = [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]

             = 10.32% + 4.80%

             = 15.12%

7 0
4 years ago
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