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Taya2010 [7]
2 years ago
6

If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then

how is the demand for the good characterized?
Business
2 answers:
jasenka [17]2 years ago
8 0

Answer:

Price Elastic

Explanation:

We know that

The formula to compute the price elasticity of demand is shown below:

= (Percentage change in quantity demanded) ÷ (percentage change in price)

The classification as follows

1. Perfectly inelastic = If zero  

2. Inelastic = When elasticity is below than one

3. Unitary elastic = When elasticity is equal to one

4. Elastic = When elasticity is exceeded than one

5. Perfectly elastic = When elasticity is in infinity

Since the  percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one

kykrilka [37]2 years ago
8 0

Answer:

<em>The demand is price elastic in nature because it is greater than 1.</em>

Explanation:

Price Elasticity of demand refers to the response of quantity demanded of a good to the change in price. Of course, when the price decreases, quantity demanded of a good increases and vice-versa but to how much degree is determined by the Price Elasticity of demand.

Mathematically, Price Elasticity of Demand is the ratio of % change in quantity demanded of a good and % change in the price of a good i.e.

<em>Price Elasticity of Demand = % change in quantity demanded of a good / % change in the price of a good</em>

In the problem, since <em>the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, the above ratio will be greater than 1. Hence, the demand of the good is price elastic.   </em>

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Answer:

24 years

Explanation:

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mixer [17]

It is true that an external transaction is a transaction the firm conducts with a separate economic entity.

<h3>What are internal and external transactions?</h3>

An internal transaction is any financial activity that occurs within an organization rather than with a third party. Usually, money is exchanged between divisions or between the business and its employees. Even while internal transactions aren't sales like external ones are, they still have an impact on the company's finances.

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7 0
1 year ago
What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%
Varvara68 [4.7K]

Answer:

21%

Explanation:

We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

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Dividend yield = 6%

Solution

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Answer:

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