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Mice21 [21]
2 years ago
10

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result

of this price increase, the volume of all cereal sold by Big G changed by -5 percent, what can you infer about the own price elasticity of demand for Big G cereal
Business
1 answer:
jeka942 years ago
5 0

Answer:

the coefficient of elasticity is 1.25. therefore demand is elastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

5% / 4% = 1.25

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

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Jobisdone [24]

Answer:

Controling.

Explanation:

Analyzing the above scenario, it is possible to identify that the process of determining the reason for the higher costs and taking measures to reduce those costs is part of an organization's control management process.

It is essential that each company has a well-established control management system, as a way of positively influencing employees in the company and ensuring that all strategic activities and actions are carried out as planned to achieve organizational objectives and goals.

An effective management control process ensures that companies operate more effectively, improving organizational resource management processes, reducing costs and making management more structured and effective so that a company remains competitive and profitable in the market.

7 0
2 years ago
Elaborate on the meaning of contemporary socio-economic issues.​
saul85 [17]

Answer: See explanation

Explanation:

Contemporary Socio-economic issues are the challenges that are faced by the society. It should be noted that these problems and challenges have s negative impact on the economy and the society as a whole.

Some of the contemporary socio-economic issues that are faced by the society are poverty, corruption, illteracy, unemployment, etc.

These issues poses a challenge to the government and government seek ways to address them.

4 0
3 years ago
Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $5 1
den301095 [7]

Answer:

Cost of merchandise sold = $ 28

Gross profit = $ 13

The ending inventory under the LIFO method = $ 18

Explanation:

Given:

October 5,

Purchased units =  1

Unit cost = $5

on October  12,

Purchased units = 1

Unit cost = $ 13

On October 28,

Purchased unit = 1

Unit cost = $ 15

Total cost of the 3 units purchased = $33

Now, the unit sold on October 31 will be the unit purchased in the end i.e on October 28

thus,

Cost of merchandise sold = $ 28

Gross profit = Selling price of the unit - Unit price of purchase

or

Gross profit = $ 28 - $ 15 = $ 13

now, the ending inventory under the LIFO method = $ 5 + $ 13 = $ 18

4 0
3 years ago
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