Complete the following sentences:

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

katen-ka-za [31]

Answer:

total revenue for 500 is $2500

total revenue for 400 is $2800

Explanation:

given data

price of good A = $50

quantity demanded of good A = 500 units

price of good A rises = $70

quantity demanded of good A falls = 400 units

solution

we get here Elasticity of demand that is express as

Elasticity of demand = (change in quantity ÷ average quantity) ÷ (change in price ÷ average price) .......................1

here

Change in quantity is = 400 - 500 = -100

and average quantity is = $\frac{400+500}{2}$ = 450

and change in price is = 70 - 50 = 20

average price is = $\frac{70+50}{2}$ = 60

so now we put all value in equation 1

Elasticity of demand = $\frac{\frac{-100}{450} }{\frac{20}{60} }$

Elasticity of demand = -0.67

as here the elasticity of demand is inelastic because elasticity is above -1

so about total revenue when price will increases as elasticity is inelastic

so increase in price will cause increase in revenue because revenue is maximum when elasticity = -1

and increase in price will cause increases elasticity in the absolute term and revenue will increase

total revenue = price × quantity

so

total revenue for 500 = 500 × 5 = $2500

total revenue for 400 = 400 × 7 = $2800

5 0

3 years ago

A leading global vendor of computer software; hardware for computer, mobile and gaming systems; and cloud services. Its corporat

xeze [42]

Answer:

Microsoft

Explanation:

4 0

2 years ago

The debits to Work in ProcessâAssembly Department for April, together with data concerning production, are as follows: April 1,

sergey [27]

Answer: c. $2.89 per unit

Explanation:

Using the First-In, First-Out method, we need to find the equivalent units first:

= Equivalent opening units + Units started and completed + Equivalent ending units

= (Opening units left to be completed) + (Units completed - opening units) + (proportion of closing units completed with respect to conversion)

= (3,000 * (1 - 40%)) + (12,000 - 3,000) + (1,000 * 40%)

= 11,200 units

Conversion costs = 32,363

Conversion cost per units:

= 32,363 / 11,200 units

= $2.89 per unit

4 0

3 years ago

On February 1, 2017, Nelson Corporation purchased a parcel of land as a factory site for $320,000. An old building on the proper

vladimir2022 [97]

Answer:

$335000 and $1425000

Explanation:

The values given are:

-Demolition of old building=$ 20,000

-Architect's fees=$35,000

-Legal fees for title investigation and purchase contract=$5,000

-Construction costs=$1,390,000

-Salvaged materials resulting from demolition=$10,000

-Cost of factory site= $320000

Therefore,

1) The cost of land is:

$320000+$5000+$20000-$10000

= $335000

2) The cost of the new building is:

$35000+$1390000

= $1425000

Thus, the cost of the land and new building is $335000 and $1425000 respectively.

4 0

3 years ago

"janice needs to write an essay on the history of the new york stock exchange. she decides to first answer the questions of who,

strojnjashka [21]

The correct answer is journalist questions. Journalist questions are questions that are being given by which it used the 5 W’s and H that the questions are associated to by which reporters ask to lead the paragraph of the story being made.

6 0

3 years ago