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Agata [3.3K]
2 years ago
12

Suppose the quantity demanded of a particular good increases by 30%, and (the absolute value of) the price elasticity of demand

of this good is known to be 2. How must the price have changed?a. it increased by 15%b. it decreased by 66%c. it decreased by 15%d. it increased by 66%
Business
1 answer:
viktelen [127]2 years ago
8 0

Answer: Option (c) is correct.

Explanation:

Given that,

Quantity demanded increases by = 30%

Price elasticity of demand = 2

Therefore,

Price elasticity of demand = \frac{Percentage\ change\ in\ quantity\ demanded}{Percentage\ change\ in\ prices}

2 = \frac{30}{Percentage\ change\ in\ prices}

Percentage change in prices = \frac{30}{2}

                                                = 15%

Therefore, price of a particular good decreases by 15%.

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boyakko [2]

Answer:

Option B. Treasury Stock for $1,200

Explanation:

The reason is that when 1,000 shares which has $2 par value and were issued at $10 per share, the journal entry was:

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Cr       Paid In Capital   $8,000

But when 100 shares were repurchased at $12 per share, then the accounting treatment would be

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So the correct option is option B.

5 0
3 years ago
The organization of 183 countries, all of which have signed treaties to protect intellectual property rights, is known as
nignag [31]
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3 years ago
Label each of the following scenarios with the correct combination of price change and quantity change. In some scenarios, it ma
ZanzabumX [31]

Explanation:

Classifying of each situation with the correct combination of change in price and quantity:

a. On a hot day, both demand for lemonade and supply of lemonade increase - Pp? Q increase

b. On a cold day, both demand for ice cream and the supply of ice cream decrease -  Pp? Q decrease

c. When Hawaii's Mt. Kilauea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases- P increase Qq?

d. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster - P decrease Qq?

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3 years ago
Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increase in demand t
Verdich [7]

Answer:

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If firms are earning positive profits, in the long run new firms would enter into the industry and this woold drive positive profits to zero. As a result , firms would be operating at the efficient scale.

I hope my answer helps you

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3 years ago
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