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Lera25 [3.4K]
3 years ago
11

If the demand curve is linear and downward sloping, which of the following statements is not correct? Select one: a. Starting fr

om a point on the upper part of the demand curve, an increase in price leads to a decrease in total revenue. b. Different pairs of points on the demand curve cannot result in different values of the slope of the demand curve. c. Different pairs of points on the demand curve can result in different values of the price elasticity of demand. d. Demand is more elastic on the lower part of the demand curve than on the upper part.
Business
1 answer:
PilotLPTM [1.2K]3 years ago
3 0

Answer:

The correct answer is option d.

Explanation:

If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.

The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.

The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.

Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.

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The government has set a price floor on bread. Manufacturers can’t sell loaves for less than $5.00, which is a dollar above the
Aleonysh [2.5K]

Answer:

A. The quantity demanded for bread will decrease , quantity supplied will increase

Explanation:

PRICE FLOOR is the minimum mandated price set by government , usually above equilibrium price , to ensure producers' protection (if market price is perceived to be low) . EG : Minimum Support Price for agricultural products to protect farmers .

However at this raised price : There is Excess Supply , as Quantity Supplied increases with price increase (law of supply - price & supply direct relationship) , Quantity Demanded falls (law of demand - price & demand inverse relationship)  

6 0
3 years ago
g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale
Tresset [83]

Answer and Explanation:

The impact on the sale and the payoff the loan in an accounting equation is as follows:

But before that

The following journal entries should be recorded

Cash $60,000    

        To Land $40,000

        To Profit on sale of land $20,000

(Being the sale of the land is recorded)

Loan Dr $15,000

       To Cash $15,000

(Being the loan is paid)

Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000

8 0
2 years ago
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c
geniusboy [140]

Answer:

NPV = -$78,318

Explanation:

cash flow 0 = -$310,000 - $190,000 = -$500,000

cash flow 1 = $125,000

cash flow 2 = $125,000

cash flow 3 = $125,000 - $58,000 = $67,000

cash flow 4 = $125,000 + $83,000 + $190,000 = $398,000

NPV = -$500,000 + $125,000/1.2 + $125,000/1.2² + $67,000/1.2³ + $398,000/1.2⁴ = -$78,318

7 0
3 years ago
Universal Concerts wants to bring a series of country music concerts to Canada next year. In general, Western Canadians prefer c
SashulF [63]

Answer:

The correct answer is letter "A": geographic characteristics.

Explanation:

Market segmentation refers to the classification companies make of their consumers based on different features such as age, gender, or income for instance so that firms can decide in which of those sectors they are likely to have more success based on the know-how and resources it counts on. As well, companies consider the sector that provides more opportunities so the likelihood of generating more revenue increases.

Therefore, <em>Universal Concerts must focus on geographic characteristics at the moment of choosing what type of concerts they will handle if there is a need to set one type of them only.</em>

7 0
3 years ago
An automobile dealer sells service contracts. The contracts stipulate that the dealer will perform specific repairs on covered v
stiv31 [10]

Answer:

a. yes no

Explanation:

At the time of contract the service revenue is not been realized because service is been perform and dealer made a promise to perform services in future. So the revenue will be deferred and will be earned or realized when service will be performed in the future. Deferred revenue will be effected and service revenue will not be effected at the time of contract.

4 0
3 years ago
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