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Lostsunrise [7]
3 years ago
5

The Poison Apple Diner had an average dinner cover charge of $8.75 during the month of September, when 3,000 atrons were served.

Queen Grimhilde, the owner/manager, increased the dinner menu prices by an average of $.50 per item. During the first 30 days of October, 2,900 patrons were served dinner, and the average cover charge was $9.25. Compute the price elasticity of demand.
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

0.583

Explanation:

Data provided in the question;

Average dinner charges = $8.75

Initial demand = 3,000 atrons

Increase in price = $0.50

Final demand = 2,900

Thus,

change in demand = 3,000 - 2,900 = 100

Now,

The price elasticity of demand = \frac{\textup{Percentage change in demand}}{\textup{Percentage change in price}}

also,

Percentage change in demand = \frac{\textup{Change in demand}}{\textup{Initial demand}}\times100\%

= \frac{\textup{100}}{\textup{3000}}\times100\%

= 3.33%

Percentage change in price =  \frac{\textup{Change in price}}{\textup{Initial price}}\times100\%

= \frac{\textup{0.50}}{\textup{8.75}}\times100\%

= 5.714

thus,

The price elasticity of demand = \frac{\textup{3.33}\%}{\textup{5.714}\%}

= 0.583

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skelet666 [1.2K]

Answer:

$13,000

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Businesses can deduct the full purchase price of qualifying equipment (used manufacturing equipment qualifies) as long as it was purchased after January 1, 2019. This is an incentive created to encourage businesses to buy more equipment and invest more.

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UkoKoshka [18]

Answer:

$17,877

Explanation:

initial outlay = ?

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7 0
3 years ago
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Gnoma [55]

Answer:

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Nimfa-mama [501]

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