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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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Given the following data for Vinyard Corporation:
rosijanka [135]

Answer:

C

Explanation:

D / V = 1000 / 4000

Dividing 1000 by 4000 gives 0.25 = 25%

E / V = 3000 / 4000

Dividing 3000 by 4000 gives 0.75 = 75%

7 0
3 years ago
At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The uni
amid [387]

Answer: $80

Explanation:

Since the fixed costs are $180,000 and variable costs are $540,000, then the total cost will be:

= Fixed cost + Variable cost

= $180000 + 540000

= $720000

Since there are 9000 units, then the unit sales price will be:

= $720000 / 9000

= $80

The unit sales price is $80

7 0
3 years ago
The average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents. Water
UkoKoshka [18]

Answer: A. It has a competitive advantage in the industry

Explanation:

From the question, we are informed that the average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents and that Water Inc. manufactures the same product for 0.10 cents while its average price is 0.40 cents.

The scenario shows that Water Inc has a competitive advantage in the industry. This is seen as the bottle of water is produced at a cheaper cost wen compared to its rivals.

7 0
2 years ago
Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the co
BaLLatris [955]

Answer:

The correct answer is C

Explanation:

NCI stands for the Non-controlling interest which also called as the minority interest, it is defined as the position of ownership where the shareholder owns outstanding shares that is less than 50% and has no control on the  decisions.

Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.

7 0
2 years ago
Suppose the manager agrees to pay each employee a​ $50 bonus if they meet a certain goal. on a typical​ saturday, the​ oil-chang
Sergeeva-Olga [200]

Answer:

Incomplete question

First aspect of the question is typed below.

The shape of the distribution of the time required to get an oil change at a 20-minute oil-change facility

is unknown. However, records indicate that the mean time is 2l.2-minutes, and the standard deviation 3.5 minutes.

Explanation:

Employees bonus $50

35 oil changes between 10:00 am to 12:00pm

n = 35

10% changes

So, the z - score can be calculated using

z-score = InvNorm(0.10)

z-score = -1.28

So, given that,

Standard deviation is 3.5minutes

σ = 3.5 minutes

Mean time is 21.2 minutes

μx = 21.2 minutes

Then,

σx = σ / √n

σx = 3.5 / √35

σx = 0.5916 minutes

Then, Z score can be written as

Z = (x - μx) / σx

-1.28 =  (x - 21.2) / 0.5916

Cross multiply

-1.28 × 0.5916 = x - 21.2

-0.7573 = x - 21.2

x = 21.2 - 0.7573

x = 20.443 minutes

There is a 10% chance of being at or below a mean oil-change time of 20.44 minutes

5 0
3 years ago
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