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fiasKO [112]
3 years ago
11

At a price of $4 per unit, Gadgets Inc. is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 ga

dgets. If the price were to rise to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. If these are the only two firms supplying gadgets,
what is the elasticity of supply in the market for gadgets?
a.)1.2
b.).80
c.).833
d.)1.0
Business
1 answer:
Montano1993 [528]3 years ago
6 0

Answer:

Option (a) is correct.

Explanation:

Average of quantity supplied:

= (70,000 + 30,000) ÷ 2

= 50,000

Percentage change in quantity supplied:

= (70,000 - 30,000) ÷ 50,000

= 0.8

Average of price change:

= (8 + 4) ÷ 2

= 6

Percentage change in price:

= (8 - 4) ÷ 6

= 0.667

Therefore,

Elasticity of supply in the market for gadgets:

= Percentage change in quantity supplied ÷ Percentage change in price

= 0.8 ÷ 0.667

= 1.2

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Answer:

would leave the market first if the price were any lower.

Explanation:

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Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

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3 years ago
If the government of Balancia runs a deficit of $50 million per year in Year 1 and in Year 2 due to its recession, but then has
natima [27]

Answer:

Cyclically balanced budget

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2 years ago
During 2014, carlita's competitor farside had double the sales of carlita, but it also earned a gross margin of $30,000. what wa
Olegator [25]

The gross margin percentage is 12.5%.

Gross income is revenue much less the charges of products bought. Gross profit and gross margin are on occasion used interchangeably. in the meantime, gross margin and gross profit margin also are used interchangeably, Gross profit margin takes the gross income (sales much less value of goods bought) and divides it via sales.

Gross margin is revenue minus the price of goods bought (COGS). Gross margin is now and again used to refer to gross income margin, that's revenue minus price of goods bought (or gross income) divided by means of revenue.

Gross margin equates to internet sales minus the fee of products offered. The gross margin indicates the amount of profit made earlier than deducting promoting, standard, and administrative (SG&A) fees. Gross margin can also be called gross profit margin, that's gross profit divided via net sales.

Farside's sales = (Sales of Carlita * 2) = $120,000*2 = $240,000.

Farside's gross margin percentage

= (Gross margin / Sales) * 100

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= 12.5%

Learn more about gross margin here: brainly.com/question/8189926

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2 years ago
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Flauer [41]

Answer:

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Explanation:

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3 years ago
After a job interview, you should _____.
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You should call back to check on your application progression. (but not immediately after) I hope this helps!
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