1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 years ago
8

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

hat the price elasticity of demand for his pizza is -2, and he asks you for advice. He wants to know two things. First, how many pizzas will he sell if he cuts his price by 10%? Second, how will his revenue be affected?
If he cuts his price by 10%, his sales will increase to     pizzas, and his total revenue will increase to $   .
Business
1 answer:
Zigmanuir [339]3 years ago
4 0
Let
z----------------- > Price Elasticity
x----------------- > % Change in Quantity
y----------------- > % Change in Price

we Know that

Price Elasticity = (% Change in Quantity) / (% Change in Price)----> z=x/y

z=-2
y=-10%
x= <span>?
</span>z=x/y---------------- > x=z*y=(-2)*(-10)=20 %
% Change in Quantity=20%
Part A) how many pizzas will he sell if he cuts his price by 10%?
He will sell (500 +20 %)----------> 500*1.2=600 pizzas per week

the answer part A is 600 pizzas per week

Part B) <span>how will his revenue be affected?
<span>initial revenue per week
</span>500 pizzas*</span><span>$20 =$10000

final revenue per week
(500 pizzas+20%) *(</span>$20-10%)=600 pizzas*$18=$10800
$10800-$10000=$800
<span>
the answer part B is
His revenue </span><span>will increase  $800 per week</span>

You might be interested in
Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
2 years ago
Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2016, Bull'sEye sold $2,000,000 o
alekssr [168]

Answer:

b) $1,950,000

Explanation:

Value of gift cards redeemed with those whose date of redemption has passed, will both have the amount to revenue out of $2,000,000 of the gift cards sold.

Total gift card revenue to be recognized in 2016 = $1,800,000 + $150,000

Total gift card revenue to be recognized in 2016 = $1,950,000

4 0
3 years ago
ABC Company’s budgeted sales for June, July, and August are 14,800, 18,800, and 16,800 units, respectively. ABC requires 30% of
aleksandr82 [10.1K]

Answer:

The number of units to be produced in June and July is 16,000 units and $18,200 respectively

Explanation:

The computations are shown below:

Number of units produced in June

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is  14,800 units

Ending inventory units = 18,800 units × 30% = 5,640 units

Beginning inventory units = 4,440 units

Now put these units to the above formula  

So, the units would equal to  

= 14,800 units + 5,640 units - 4,440 units

= 16,000 units

Number of units produced in June

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is  18,800

Ending inventory units = 16,800 units × 30% = 5,040 units

Beginning inventory units = 18,800 units × 30% = 5,640 units

Now put these units to the above formula  

So, the units would equal to  

= 18,800 units + 5,040 units - 5,640 units

= 18,200 units

5 0
3 years ago
____________ marketing links the organization to its customer, employees, suppliers, and other partners for mutual long-term ben
horrorfan [7]

Answer:

the answer for the question is customer

4 0
3 years ago
Read 2 more answers
Your regular rate of pay is $8.25 an hour. You worked 40 hours plus 4 hours of overtime at 1.5 times your regular pay. Calculate
Nikitich [7]
Young gross pat 40 hours is 20 dollars
3 0
3 years ago
Read 2 more answers
Other questions:
  • One of your classmates was recently found to have cheated on the exam. Though furious, your instructor spoke to the student very
    5·1 answer
  • A mobile device overheats for seemingly no reason. what is the most likely cause?
    12·1 answer
  • Toshlin issues financial statements on June 30. If payroll was $30,000 through June 30th and wages were to be paid on July 5. Wh
    7·1 answer
  • What plan of action will you do to address your development area??
    7·1 answer
  • What helps make a poster look attractive, improve readability, and highlight the message the designer wants to convey in the pos
    14·2 answers
  • A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for h
    8·1 answer
  • It's time to think like a manager. Corporate social responsibility is wonderful, though often criticized as purely rhetorical an
    12·1 answer
  • Which of the following is an internet job search "do"​
    11·2 answers
  • Janelle make $648 commission when she sold $32,400 worth of insurance. What rate of commission did she make
    13·1 answer
  • The Ingraham Corporation has $1,000 par value bonds outstanding. The bonds have an annual coupon rate of 8.90 percent and an ann
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!