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]
2 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]2 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
How did the new world discovery build an interdependent global economic system? what were the distinctive roles played by europe
Anna35 [415]

New world discovery build an interdependent global economic system where each continent relied on the others to thrive. Role of Europe was to supply markets, capital, technology, Africa was to supply labor and America supplied raw materials (like metal and soil for sugar cane)

More about interdependent economic system:

Economic interdependence refers to the mutual reliance of those involved in an economic system who trade in order to receive the goods they are unable to create effectively on their own.

Such trading connections demand that a participant's actions have an impact on its trading partners, and it would be expensive to end the relationship.

Learn more about interdependent economic here:

brainly.com/question/4745456

#SPJ4

7 0
1 year ago
We calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $5.68 billio
Simora [160]

Answer:

Explanation:

1. If the price of oil were $70.00 per barrel, what would be the free-market price of gas?

The free-market price is defined by the equilibrium point: when the quantity demanded and the quantity supplied are equal.

QS = 15.90 + 0.72PG + 0.05PO

QD = 0.02 – 1.8PG + 0.69PO

15.90 + 0.72PG + 0.05(70.00) = 0.02 – 1.8PG + 0.69(70.00)

19.4 + 0.72 PG= 48.32-1.8PG

PG(0.72+1.8)=48.32-19.4

PG= 28.92/2.52

PG= $11.48

QS=QD= 15.90+0.72(11.48)+0.05(70.00)

QS=QD= 27.66

What would be the deadweight loss if the price of natural gas were regulated to be $4.00? The deadweight loss would be $___ billion. (Round answer to two decimal places)

If PG is $4.00

The quantity supplies will be less than the quantity demanded. The quantity supplied will be the quantity sold in the market.

QS=  15.90+0.72(4)+0.05(70.00)

QS= 22.28

To find the deadweight loss we must evaluate the quantity supplied in the demand curve:

22.28 = 0.02 – 1.8PG + 0.69(70.00)

1.8PG= 48.32-22.28

PG= 26.04/1.8

PG= 14.47

And now we calculate the area shown in the figure attached:

Base: 14.47-4= 10.47

Height: 27.66-22.28= 5.38

Deadweight loss: (10.47*5.38)/2

Deadweight loss: 28.1643

The deadweight loss would be $28.16 billion.

6 0
2 years ago
Joe's pizza hired a fourth worker, who made an additional ten pizzas per hour. Joe also discovered that the number of pizzas mad
azamat

Answer:

number of pizza per our = 10

number of worker = 4

number of pizza per our per worker =2.5

Explanation:

7 0
2 years ago
A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3 Probability 25% 50% 25% Sp
Korvikt [17]

Answer:

The answer is letter B.

Explanation:

The mean is 2.03 =($2.5+ $2 + $1.6)/ 3 ; [0.25(2.5-2.03)²] + [0.5(2-2.03)²] + [0.25(1.6- 2.03)²] = 0.055225+0.00045 + 0.046225= 0.1019

Letter B = 010

7 0
3 years ago
A type of partnership called a ___________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a
gizmo_the_mogwai [7]

Answer:

The correct answer is letter "D": master limited partnership.

Explanation:

A Master Limited Partnership or MLP is a publicly-traded partnership in which the limited partnership interest is traded in much the same way as the corporate shares. In an MLP there are two groups of partners: <em>the general partner</em> -holding a small percentage- and the <em>limited partners</em> -controlling most of the partnership. The limited partners pay MLP revenue taxes on their personal income tax returns.

4 0
3 years ago
Other questions:
  • Which of the following set the first minimum wage? The Taft-Hartley Act of 1947 The AFL-CIO The Norris-LaGuardia Act of 1932 The
    6·1 answer
  • According to OSHA standards, a competent person is defined as one who is capable of identifying existing and predictable hazards
    13·1 answer
  • What kind of consumer is a human in the food chain??
    10·1 answer
  • Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the N
    7·1 answer
  • Adam has a monthly income of $20 that can be spent on books (B) and pencils (P). The price of a book is $5 and the price of a pe
    13·1 answer
  • Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One
    7·1 answer
  • With careful attention to controlling costs and quality, businesses can successfully satisfy consumers with a standardized produ
    9·1 answer
  • Yanmei, an employee at a news agency, learns that the reason her colleague was asked not to pursue a news story further was beca
    5·1 answer
  • Media business became big in the 1830s, partially due to the development of ______, which allowed for mass production of newspap
    7·2 answers
  • Econo Nation started 2015 with no national budget debt or surplus. By the end of 2015, it had a budget surplus of $304 million;
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!