Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A
Explanation:
The following can be deduced form the question:
P1 = $50
P2 = $70
Q1 = 500 units
Q2 = 400 units
Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100
Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100
% change in quantity = (400 - 500)/(400 + 500)/2 × 100
= -100/450 × 100
= -22.22%
% change on price = (70 - 50)/(70 + 50)/2 × 100
= 20/60 × 100
= 33
Price elasticity of demand = % change in quantity / % change on price
= -22.22 / 33
= -0.67
This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.
Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A
Answer:
Kindly check attached picture
Explanation:
Given the details below
Accounts Debit Credit
Cash $16,000
Accounts receivable 162,000
Prepaid rent 10,000
Supplies 31,000
Equipment 370,000
Accumulated depreciation $129,000
Accounts payable 11,000
Salaries payable 3,500
Interest payable 1,900
Notes payable (due in two years) 37,000
Common stock 210,000
Retained earnings 176,100
Dividends 27,000
Service revenue 360,000
Salaries expense 150,000
Advertising expense 75,000
Rent expense 18,000
Depreciation expense 32,000
Interest expense 2,500
Utilities expense 35,000
Totals $928,500 $928,500
Prepare an income statement for China Tea Company for the year ended December 31, 2021
Kindly check attached picture
Answer:
ROI = Net operating income x 100
Average operating assets
ROI = $1,924,320 x 100
$6,000,000
ROI = 32.1%
The correct answer is C
Explanation:
ROI is the ratio of net operating income to average operating assets multiplied by 100.
The steps that Janet can take to avoid falling prey to deceptive advertising are the following:
- <em>Know what she wants</em>
- <em>Trust her judgement</em>
- However, if Janet has already fallen prey to deceptive or false advertising, which is illegal, she can file a lawsuit against the company.
- The lawsuit aims to recover damages from the company for misleading her into making a purchase or payment for goods or services whose advertising was deceptive.
- It is generally unethical for a company to mouth a deceptive advertising.
Thus, Janet may not only trust online resources or purchase products from one retailer, she should carry out proper research based on what she wants before trusting her judgement.
Read more about deceptive advertising at brainly.com/question/24271514
Thirdly, storage of services is not possible, as services are consumed when offered to a customer.
Answer: Option 3.
<u>Explanation:</u>
Perishable is a feature where a good or service can not be stored for long. They might get hampered and do not remain like their original self if they are stored.
Services have a perishable nature in the sense that they can not be stored like some of the goods which can be stored. The services are to be consumed then and there at the moment when they are offered to the customers. They can not be kept reserved.
