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Taya2010 [7]
3 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]3 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]3 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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a_sh-v [17]

Answer:

Value of scholarship today = $30,484.90

Explanation:

The value of the Scholarship is the present value of the annual payment of $9,000 discounted as the annual interest rate of 7% per annum.

This can be computed using the formula below

Present Value = Annual cash flow ×  (1- (1+r)^(-n)/r)

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rate r- 7%, n=4, Annual  cash flow = 9,000

Present Value = 9,000× (1-1.07^-4)/0.07

                      = 9,000× 3.3872

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Value of scholarship today = $30,484.90

4 0
3 years ago
When comparing absorption costing and variable costing, if units produced are units sold, what is the effect on net operating in
11111nata11111 [884]

Answer:

The Net Operating income will be the same for both methods.

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When units produced are units sold, there is no inventory. Therefore, the Net Operating income will be the same for both methods.

8 0
3 years ago
Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Pr
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Answer and Explanation:

The computation is shown below:

1. Plant wide overhead rate = Budgeted Overheads ÷ Budgeted Activity.

where,

Budgeted Overheads :

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As Basic model required 6,000 direct labor hours

So, Basic model = 6,000 × $17.44

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8 0
3 years ago
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