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Romashka-Z-Leto [24]
3 years ago
14

The price of a new computer game has demand of 3,000 units at $50 and 2,500 units at $60. Calculate the Price Elasticity of Dema

nd rounded to two decimal places. Which statements are correct?
(A) If the price decreases 10%, demand will decrease 10%.
(B) The demand is inelastic.
(C) If the price increases 10%, demand will decrease 10%.
(D) The demand is unitary elastic.
(E) If the price increases 10%, demand will increase 10%.
Business
1 answer:
kondaur [170]3 years ago
8 0

Answer:

option D "The demand is unitary elastic."

Explanation:

Data provided:

At price, P1 = 3,000 units

Demand, D1 = $ 50

also,

at price P2 = $ 60

Demand, D2 = 2,500 units

Now,

the percentage change in price = \frac{60-50}{50}\times100

or

the percentage change in price = 20%

and,

The percentage change in the quantity = \frac{2500-3000}{2500}\times100

or

The percentage change in the quantity = -20%

The elasticity in demand (Ed) is given as:

Ed = (Percentage change in quantity) / (Percentage change in price)

on substituting the values, we get

Ed = (-20%) / 20%

or

Ed = - 1

Here the negative sign depicts the inverse relation between the price and the demand.

hence, the correct answer is option D "The demand is unitary elastic."

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Answer:

A. A only

Explanation:

U.S. Generally Accepted Accounting Principles (GAAP) does not allow property, plant, and equipment to be written up or revalued. If the fair value of PP&E falls below the book value and the amount is material then a company must write down the asset to fair value.

Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.

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You have just started your first job and are already planning for retirement. You plan on retiring in 31 years. To support your
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Answer:

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PMT (Monthly deposit needed) = ?

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Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers f
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Answer: The correct answer is "differentiated".

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Read 2 more answers
A company had beginning assets and liabilities were Rs. 100,000 and Rs. 50,000 respectively.
elena-14-01-66 [18.8K]

Answer: Rs. 120,000

Explanation:

At the end of the year, both assets and liabilities had doubled. New asset and liability figures are therefore:

Assets = Rs. 200,000

Liabilities = Rs. 100,000

Net income is part of equity and as there is no equity, net income must be the entire equity.

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200,000 = Equity + 100,000

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