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Aleonysh [2.5K]
3 years ago
14

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 $2.75 each, he sells 100. At a price of $2.25 each, he sells 300. Instructions: Round your answer to 1 decimal place. a. What is the elasticity of demand? . b. Is demand elastic or inelastic over this price range? . c. If demand had the same elasticity for a price decline from $2.25 to $1.75 as it does for the decline from $2.75 to $2.25, would cutting the price from $2.25 to $1.75 increase or decrease Danny’s total revenue? .
Business
1 answer:
Nina [5.8K]3 years ago
8 0

Answer:

To calculate the elasticity of demand, we need to use mid point elasticity theory.

According to mid point theory,

Ed = [(Q2 - Q1) / {(Q1 + Q2) / 2}] / [(P2 - P1) / {(P1 + P2) / 2}]

Where, Ed = Elasticity o demand

Q1 = Initial quantity = 100

Q2 = New Quantity = 300

P1 = Initial price = $2.75

P2 = New price = $2.25

Ed = [(300 - 100) / {(100 + 300) / 2}] / [(2.25 - 2.75) / {(2.75 + 2.25) / 2}]

Ed = - 5.

a. So, the elasticity of demand is - 5 or in absolute term 5.

b. As the value of elasticity is more than 1, that means, the elasticty over the price range in elastic.

c. From theory, we knew that, when the demand is elastic, then a decrease in price causes a increase in total revenue. Because, as the demand elasticity is elastic, so the increase in output is higher than decrease in price.

Total revenue will increase

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Why should management increase with the size of the company?
Evgen [1.6K]

Answer:B. So that the growth can be carefully monitored and managed

Explanation: Management is an act of planing,coordinating and the executing responsibilities in order to improve efficiency.

When a company grows the number of managers are expected to increase so that the activities of the organization is effectively coordinated,growth can be properly and efficiently monitored and managed.

If growth is not efficiently monitored and managed it will hinder the overall performance of the organization.

6 0
3 years ago
Which of the following statements is false? a. A credit is a deposit to a checking account. b. A debit is a withdrawal from a ch
allsm [11]

Answer:

c. An overdraft is a fee your bank charges you for opening a checking account.

Explanation:

Checking account is a deposit account with a bank or any  financial institution that allows the owner of such account to make withdrawals and deposits. They are also known as demand accounts or transactional accounts. They are very liquid and allows for countless deposits and withdrawals and can be obtained  by using automated teller machines, checks and electronic debits, and a number of  other methods.

A checking account is unlike other bank accounts like less liquid savings or investments account it allows for countless withdrawals and unlimited deposits, and savings accounts sometimes limit both.

The statement that an overdraft is a fee that banks charges for opening a checking account is false.

Overdraft is a form of extension of credit from a finiancial institution and often granted when an account reaches zero. it allow such account holder to continue withdrawing money even though the account has no funds  or insufficient funds that would cater  for and cover the amount of the withdrawal. So it is not the fee that bank charges for opening a checking account, instead what checking account offers is overdraft protection in which if a checking account owner write a check or make a purchase than the funds in the checking account, the bank may cover the difference.

8 0
2 years ago
Read 2 more answers
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, th
dimulka [17.4K]

Answer:

The solution is shown in the file attached below

Explanation:

Download docx
8 0
3 years ago
Savings Goals
romanna [79]

Answer:

I am sorry fam this won't be an answer to your question, but I figured out how to see the answers on brainly for ya'll that don't have premium. You just need to right click on the page of your question and then click on "view page source" for me the shortcut is ctrl+ U. I don't know about yall's. when you do that it will open up a weird looking page then you want to scroll down, what you wanna focus on are the black letters, the others will be colored red or blue or whatever just focus on the black letters. It just gonna show you the answer and the comments too. Your welcome pudgy boi.

Explanation:

Sshheeeeeeshh

7 0
2 years ago
Firm A is being acquired by Firm B for $35,000 worth of Firm B stock. The incremental value of the acquisition is $2,500. Firm A
LekaFEV [45]

Answer:

option (b) $34,789

Explanation:

Data provided in the question:

Worth of Firm A = $35,000

Incremental value of the acquisition = $2,500

Number of shares of Firm A outstanding = 2,000

Price of Firm A shares = $16 per share

Number of shares of Firm B outstanding = 1,200

Price of Firm B shares = $40 per share

Now,

Number of shares issued = Worth of Firm A ÷ Price per share of Firm B

= $35,000 ÷ $40

= 875 shares

Value per share after merger

= [ (1,200 × $40) + ( 2,000 × $16 ) + $2,500 ] ÷ [ 1,200 + 875 ]

= $82,500 ÷ 2,075

= $39.759

Therefore,

The Actual cost of acquisition

= Number of shares issued × Value per share after merger

= 875 × $39.7588

= $34788.95 ≈ $34,789

Hence,

The answer is option (b) $34,789

4 0
3 years ago
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