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Snowcat [4.5K]
3 years ago
6

If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210

bags, then the price elasticity of demand (by the midpoint method) is:
Business
2 answers:
sertanlavr [38]3 years ago
8 0

Answer:Price elasticity of demand = -0.05

Explanation:

Price elasticity of demand using the midpoint method= \frac{(Q2- Q1)/(Q2+Q1)/2}{(P2- P1)/(P2+P1)/2}

where  Q =Quantity demanded

P = Price

Price elasticity of demand =  (\frac{(210-190/210+190)/2}{0.90-1.10/ 0.90+1.10)/2}

 =     \frac{20/400)/2 }{ -0.2/2)/2}

0.025/ -0.05 = -0.05

Price elasticity of demand = -0.05

The Price elasticity of demand tells us how much quantity demanded changes in response to a change in price. Here the Demand for a good is  inelastic because  the PED coefficient is less than one -0.05

Ugo [173]3 years ago
4 0

Answer:

Elasticity = 0.5

Explanation:

Elasticity is defined as the responsiveness of quantity demanded to changes in price. One of the methods used to calculate it is the midpoint method.

Midpoint method uses average values to calculate the elasticity of demand of a good.

Elasticity = {(Q2 - Q1) ÷ (Q1 + Q2)/2} ÷ {(P2 - P1) ÷ (P1 + P2)/2}

Elasticity = {(210 - 190) ÷ (210 + 190)/2} ÷ {(0.9 - 1.10) ÷ (0.9 + 1.10)/2}

Elasticity = 0.1 ÷ 0.2

Elasticity = 0.5

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Answer:

The correct answer is option A.

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This shape of the curve is because of opportunity cost. We know that to increase the production of one commodity we need to sacrifice production of its alternative.  

The resources can not be perfectly substituted and the opportunity cost goes on increasing with the increase in output, that's why the production possibility curve is bowed out or concave to the origin.

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katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

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By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

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weight of mezzanine finance=mezzanine finance/total finance

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total finance=$5m+$2m+$1m

total finance=$8m

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Find further guidance on weighted average cost of capital's computation in the link below:

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Lina20 [59]

Answer:

Res ipsa loquitur

Explanation:

_____ is a tort in which the presumption of negligence arises because the defendant was in exclusive control of the​ situation, and the plaintiff would not have suffered injury but for​ someone's negligence.

Res ipsa loquitur is a doctrine in law that one can presume the negligence of a defendant when the facts are glaring.The doctrine has primarily required that a defendant have exclusive power over the occurrence of an injury. negligence could result from

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