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Mice21 [21]
3 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:
jeka943 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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At an activity level of 8,400 machine-hours in a month, Falks Corporation’s total variable production engineering cost is $732,4
Andru [333]

Answer:

The right response is "$107.7".

Explanation:

The given values are:

Total variable production eng. cost

= $732,480

Total fixed production eng. cost

= $180,400

Now,

Variable cost per machine hour will be:

= \frac{732,480}{8,400}

= 87.2 ($)

Fixed cost per unit will be:

= \frac{180,400}{8,800}

= 20.5 ($)

hence,

Total production cost will be:

= Total \ variable \ production \ eng. \ cost+Fixed \ cost

On substituting the values, we get

= 87.2+20.5

= 107.7 ($)

8 0
3 years ago
________ refers to the way entrepreneurs identify new products or services that may lead to promising businesses. A. Focused-bas
Arisa [49]

Answer:opportunity recognition

Explanation: identifieidentifies and selects entrepreneurial opportunities

4 0
3 years ago
Ways to deal with a quite person in a workplace
Softa [21]
Try to talk to him of the time, make him feel comfortable on you and to the team so that he would not feel awkward in speaking in front. Help him boost his confidence, give him chances to shine and showcase his skills. Put him in training team somehow?
7 0
3 years ago
A customer relationship management (CRM) system helps a company to plan, execute, and control all the activities involved in raw
RUDIKE [14]

Answer:

False

Explanation:

A customer relationship management(CRM) system is a technology that a company applies to help manage its customer interactions. The system provides a platform for a business to nurture and cultivate customer relationships. CRM enables a business to organize customer information and streamline its processes.

The traditional applications of CRM systems were in sales, marketing, and customer management. Modern CRM systems have evolved to play a more critical role in almost all departments in a business.

3 0
3 years ago
What is the impact on cash flow from operations in the current year based on the change in operating assets and liabilities list
Ganezh [65]

Answer:

The impact on cash flow from operations in the current year based on the changes in operating assets and liabilities is:

a. -200

Explanation:

a) Data and Calculations:

                                Prior Year Current Year   Changes

Accounts receivable     1,725       1,825               $100

Inventories                    1,535       1,785              $250

Accounts payable         1,325       1,475              $150

b) Accounts receivable increased by $100, thereby reducing cash inflows. Inventories increased by $250, thereby reducing cash inflows. Accounts payable increased by $150, thereby increasing cash inflows. The net effect or impact is a reduction of $200 in the cash from operations.

5 0
3 years ago
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