Because the demand between points A and B is inelastic, a $25-per-bike increase in price will lead to an increase, in total revenue per day.
in order for a price decrease to cause a decrease in total revenue, demand must be inelastic.
<h3>What is the price elasticity of demand? </h3>
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
When the coefficient of elasticity is less than one, it means that demand is inelastic. When demand is inelastic, it means that the quantity demanded is not sensitive to changes in price.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
- change in quantity demanded = 40 - 35 = 5
- Average of both demands = (40 + 35) / 2 = 37.50
- Midpoint change in quantity demanded = 5 / 37.50 = 0.133
Midpoint change in price = change in price / average of both price
- Change in price = 100 - 125 = -25
- Average of both prices = (100 + 125) / 2 = 112.50
- Midpoint change in price = -25 / 112,50 = -0,222
Midpoint elasticity of demand = 0.133 / -0,222 = 0.6
To learn more about price elasticity of demand, please check: brainly.com/question/18850846
Answer:
Longer periods of unemployment for their workers.
Explanation:
Unemployment is when people who are willing and able work do not have jobs
Types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
If a government gives generous unemployment insurance programs, there would be less incentive to find jobs because one of the main reasons why people would want to work is to have money. If the government provides generous pay to the unemployed, there would be less motivation to work and unemployment increases
Answer:
$7.20
Explanation:
Units % Mat. EUP- Mat. % Conv. EUP- Conv.
Units completed & 6000 100% 6000 100% 6000
transferred out
Units in ending inventory 2000 100% 2000 30% 600
Equivalent units of production 8000 6600
Cost per Equivalent Unit of Production
Materials Conversion Total
Beginning costs - - -
During the month costs <u>$20,800 </u> <u>$30,360</u>
Total cost $20,800 $30,360
÷ Equivalent units of production <u> 8.000</u> <u> 6,600</u>
Cost per equivalent unit $2.60 $4.60 $7.20
of production
Answer:
EXPLICIT COST
The wholesale cost for the guitars that Dmitri pays the manufacturer
The wages and utility bills that Dmitri pays
IMPLICIT COST
The rental income Dmitri could receive if he chose to rent out his showroom
The salary Dmitri could earn if he worked as a financial advisor
Explanation:
Explicit cost: those which are actually incurred this means it represent accrued expenses or actual cash outlay.
Implicit cost: refers to the opportunity cost of a factor wasted opprtunity for weing deploy in the current project. These do not represent actual expenses but potential use of the factors
