The own-price elasticity of the soccer cones is -0.67
The computation of the own-price elasticity of the soccer cones is as follows:
We know that
The Elasticity of demand is
= (change in quantity ÷ average quantity) ÷ (change in price ÷ average price)
Here
Change in quantity = 14 - 10 = 4
average quantity = (14 + 10) ÷ 2 = 12
change in price = 3 - 5 = -2
average price = (3 + 5) ÷ 2 = 4
So,
The Elasticity of demand is
= (4 ÷ 12) ÷ (-2 ÷ 4)
= -0.67
Therefore we can conclude that the own-price elasticity of the soccer cones is -0.67
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Answer:
The mark up percentage on total cost is 13%.
Explanation:
Mark up percentage on total cost refers to the profit as a percentage of the total cost.
Therefore, the mark up percentage on total cost can be calculated using the following formula:
Mark up percentage on total cost = (Desired profit / Total cost) * 100 ......... (1)
Where;
Desired profit = $143
Total cost = $1,100
Substituting the values into equation (1), we have:
Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%
Therefore, the mark up percentage on total cost is 13%.
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
<span>Price elasticity of demand is
-1.25 = Ed</span>
Price elasticity of supply =
Es
Share of tax by consumers =
0.80 = Es / (Ed + Es) = Es / Es + 1.25
0.8 Es + 1 = Es
1 / 0.2 = Es = 5
Therefore, the price elasticity of supply is 5
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