All categories

3 years ago

Why would the supply curve of a dog walking business be considered elastic

Business

1 answer:

AURORKA [14]3 years ago

4 0

Answer:

C. because it can hire workers quickly if the price rises

Explanation:

Demand is said to be elastic if a small change in price causes a significant change in the quantity demanded. For example, if the price commodity Z increases by a small percentage and the demand falls by a bigger percentage, commodity z has elastic demand. Elastic demand is about the responsiveness of quantity demanded due to changes in price.

The supply curve illustrates the relationship between price and the quantity demanded. If demand is elastic, a change in price will result in a big movement along the supply curve. If the price of labor for walking dogs decreases by a small percentage, and the demand for dog walkers increase, then the dog walking business has elastic demand.

You might be interested in

Which best describes the similarity and differences between the Construction pathway and the Maintenance/Operations pathway?

Naddika [18.5K]

Answer:

into how many geographical region Nepal has divided? describe them in a few line

8 0

3 years ago

Will today's second generation of immigrants move up the occupational ladder?

Ket [755]

No not if Donald Trump becomes president he is sending all imagrants back and he wants all white schools so

7 0

3 years ago

Factors leading to the slow growth of demand in embryonic industries include all of the following except the

wolverine [178]

Answer:

C) lack of venture capital for innovative products.

Explanation:

Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.

Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.

Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.

4 0

3 years ago

On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method?

Misha Larkins [42]

Answer: The ending inventory is $43,500

Explanation:

Cost. Retail

$ $

Beginning inventory. 125,000 166,667

Add :Purchases 235,000 313,333

-------------------- -----------------------

Cost of good available for sale 360,000 480,000

Cost to retail ratio

360,000 ÷ 480,000

= 0.75

Cost. Retail

$ $

Cost of good available for sale 360,000 480,000

Less:Sales. 230,000 250,000

360,000. 172,500

187,500

-------------------- ----------------

(417,500) 58,000

Ending inventory × 0.75 (58,000 × 0.75) = 43,500

Cost to retail ratio.

Ending inventory. $43,500

3 0

3 years ago

A firm has sales of $1.8 million, and 20 percent of the sales are for cash. The year-end accounts receivable balance is $225,000

Juliette [100K]

Answer:

The average collection period is 56.25 days

Explanation:

The average collection period is the number of days' sales in receivables and calculated by using following formula:

The number of days' sales in receivables = 360/Accounts receivable turnover ratio

Accounts Receivable Turnover = Net Credit Sales/Accounts Receivable

Net Credit sales = Total Sales - the sales are for cash = $1,800,000 - 20% x $1,800,000 = $1,440,000

Accounts Receivable Turnover = $1,440,000/$225,000 = 6.4 times

The number of days' sales in receivables = 360/6.4 = 56.25 days

7 0

3 years ago