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Alexandra [31]
4 years ago
7

Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for can

taloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?A. The demand for cantaloupes at $2.00 must be inelastic.B. We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.C. The demand for cantaloupes at $2.00 must be elastic.D. The demand for cantaloupes at $2.00 must be unit-elastic.

Business
1 answer:
Maru [420]4 years ago
4 0

Answer:

The correct answer is option A.

Explanation:

The demand for cantaloupes is unitary elastic at price level $2.50. The demand curve here is linear and downward sloping. The elasticity of demand is 1.

In this linear demand curve the lower portion will represent inelastic demand.

When the price level is reduced to $2 the demand will move to the lower portion of the curve, with fall in price and increase in demand.

So, at $2 price the demand will be inelastic, which means it will be between 0 and 1.

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Answer:

$5,325

Explanation:

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Disposable personal Income = $5,325

So, the disposable personal Income for the individual is $5,325.

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3 years ago
The central bank of the country Iberia recently announced a reduction in the interest rate by 150 basis points. Following this a
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Answer: (D.) The Iberian economy is going through a period of deflation.

Explanation:

Real interest rate can be denoted using the following formula. i.e.,

Real interest rate = Nominal Interest rate - Inflation.

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3 years ago
In an international context, the value of centralization will vary according to
Talja [164]
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3 years ago
In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock compensation and bonuses, Heather Bresch,
makkiz [27]

Answer:

The correct answer is C,top level managers may pursue their own interests over that of the company.

Explanation:

Company executives tends to pursue personal interests at the expense of the shareholders who are the bona fide owners of the business.

This selfish interest pursuance is playing out because the CEO's remuneration packages cannot be said to be justifiable in that they are not linked to any performance metrics such as the level  of profits posted.

The major concern is on the stock compensation and bonuses since the best  practice requires that benefits should be linked to the company's underlying performance,that way the company's performance is boosted and would be seen as a way win-win situation for both shareholders and the management team.

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4 years ago
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Explanation:

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