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barxatty [35]
3 years ago
6

Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he

bakes himself. At a price of $1.75 each, he sells 100. At a price of $1.25 each, he sells 300. Round your answer to 1 decimal place. What is the elasticity of demand? Is demand elastic or inelastic over this price range? If demand had the same elasticity for a price decline from $1.25 to $0.75 as it does for the decline from $1.75 to $1.25, would cutting the price from $1.25 to $0.75 increase or decrease Danny's total revenue?
Business
1 answer:
Ratling [72]3 years ago
5 0

Answer:

Relative responsiveness of consumer to change in price is called elasticity of demand.

Elasticity of demand here is 7.

Demand is highly elastic.

Cutting the price from $1.25 to $0.75, total revenue remains same as the elasticity of demand does not change.

Explanation:

Percentage change in quantity demanded due to percentage change in price.

Elasticity of demand=% change in quantity demanded/percentage change in price.

Small change in price caused a huge change in quantity demanded.

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IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6​% a year. The price of IBM is $90 per sha
Elena-2011 [213]

Answer:

Cost of equity = 8.22%

Explanation:

Cost of equity = Dividend per share /current market value + growth rate of dividend  

Cost of equity = 2/90 + 6%

Cost of equity = 0.0222 + 6%

Cost of equity =0.0222 + 0.06

Cost of equity = 0.0822

Cost of equity = 8.22%

7 0
3 years ago
Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig
marshall27 [118]

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(C) Flexible exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

(B) A fixed exchange rate regime provides certainty about the value of a currency, for example, when the exchange rate between Philippine Pesos and Arab Emirate Dollars is fixed at 10PHP - 1AED, traders in this currency will be certain that at any planning time in business, investment or consumption, 10 PHP will be equal to 1 AED.

(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

8 0
3 years ago
Discuss how the JIT concept differs between manufacturing and service companies.
mylen [45]

Similar to manufacturing, services use methods that add value to the raw materials required to make the finished product. JIT emphasizes the process rather than the end result. Therefore, it may be applied to any set of processes, whether they are involved in manufacturing or providing services.

In the context of the industrial and service industries, the Just in Time (JIT) system: Companies use just-in-time (JIT) inventory strategies to boost productivity and cut waste by only ordering products when they are actually needed for manufacturing, which lowers inventory expenses.

Between service and manufacturing organizations, there are five key differences: the tangible nature of their output; production on demand or for inventory; production tailored to the needs of a particular customer; labour-intensive or automated operations; and the requirement for a physical production location.

In reality, though, service and industrial firms have a lot in common. Many manufacturers have their own service departments, and both industries need trained workers to run a successful organization.

Learn more about JIT here:

brainly.com/question/16016464

#SPJ4

4 0
2 years ago
QUESTION 5 of 20: You plan to put anti-theft devices on each garment in your store. You have 575 garments and it takes an employ
Aleksandr [31]

Answer:

1.6

Explanation:

I just did my marketing quiz, it comes out at about 1.59 so 1.6

7 0
3 years ago
Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
lidiya [134]

Answer:

Fixed costs= $73,760

Variable cost= $159,430

Explanation:

<u>First, let's separate the factory overhead costs:</u>

<u></u>

Power and light 40,450

Factory insurance 23,560

Production supervisor wages 118,980

Production control wages 30,930

Factory depreciation 19,270

<u>Now, the fixed and variable costs:</u>

Fixed costs= Factory insurance 23,560  + Production control wages 30,930 + Factory depreciation 19,270

Fixed costs= $73,760

Variable cost= Power and light 40,450 + Production supervisor wages 118,980

Variable cost= $159,430

6 0
3 years ago
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