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otez555 [7]
3 years ago
9

In a local​ market, the monthly price of internet access service decreases from ​$40 to ​$30​, and the total quantity of monthly

accounts across all internet access providers increases from 80 comma 000 to 180 comma 000. what is the value price elasticity of​ demand, expressed as a positive​ number?
Business
1 answer:
deff fn [24]3 years ago
5 0

The answer is : The demand is elastic.

Elasticity =

[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|

[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23

The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.

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Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic​ profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

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7 0
2 years ago
How did speculative investing weaken the stability of the stock market
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The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks. 
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3 years ago
Jonathon works for a U.S. company that doesn't produce goods domestically, but instead buys them from other countries and resell
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2 years ago
Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Depo
Alja [10]

Answer:

What is the Value of Bank Deposits?

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Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?

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3 years ago
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