1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Trava [24]
3 years ago
9

Suppose the price of university sweatshirts increases from $10 to $20 and the quantity supplied increases from 20 to 30. The pri

ce elasticity of supply, using the midpoint formula, is:
1.66.
0.66.
0.60.
1.50.
Business
1 answer:
riadik2000 [5.3K]3 years ago
3 0

Answer:

0.60

Explanation:

The midpoint formula is used to calculate elasticity by using average percentage in both price and quantity.

The formula is given below:

Percentage change in quantity =<u>  (Q2 -Q1)     </u>   x  100

                                                        (Q2 + Q1) / 2

Percentage change in price = <u> (P2 -P1)     </u>   x  100

                                                   (P2 + P1) / 2

Elasticity =<u> Percentage change in price__</u>

                 Percentage change in quantity

Inserting the data:

Percentage change in quantity =<u> (30  -20)    </u>  x  100  =    <u>10</u> x 100  = 40%

                                                       (30 + 20) /2                   25

Percentage change in price  = <u>($20 - $10)</u> x 100    =  <u>10</u>  x 100   =  66.6%

                                                    ($20 + $10) /2             15

Elasticity of supply = <u>40%</u>

                                  66.6%

                                  = 0.60

                                           

You might be interested in
The two basic sources of​ stockholders' equity are​ ________.
Radda [10]
<span>The two basic sources of​ stockholders' equity are​ paid-in capital and retained earnings. Stockholders' equity is represented by the equity stake that is held on the books by a firm's equity investors. Paid-in capital is the amount of money (capital) that is paid in by the </span>investors when common or preferred stock being issued. Retained earnings are shown as a percentage of the net earnings that are not paid out as dividends but kept in the corny to be reinvested. 
5 0
3 years ago
George is going shopping for a new car to replace his old one. Which of these costs would be
uranmaximum [27]

The cost that would relevant in the choice of a new car is the the cost to operate the new vehicles.

<h3>What cost would be relevant?</h3>

The cost that would be relevant in the choice of a new car is the cost that is dependent on the type of car chosen. The cost to operate the new car would depend on the type of car chosen. If George buys a more fuel efficient car, the cost of running the car would be cheaper.

To learn more about cost, please check: brainly.com/question/27127934

4 0
2 years ago
A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a
Sonja [21]

Answer:

-1,551,758.16

5 0
3 years ago
Cake is a product of the Chester company which is primarily sold in the Americas Budget segment. Chester starts to create their
alekssr [168]

Answer:

Cake demand next year=1,267,498 units

Explanation:

Y=I+G

where;

Y=cake demand next year

I=initial demand

G=growth demand

Meaning;

Cake demand next year=Initial demand+growth demand

where;

Initial demand=1,207,141 units

growth demand=5% of initial demand

growth demand=(5/100)×1,207,141=60,357.05 units

replacing;

Cake demand next year=1,207,141+60,357.05=1,267,498.05

Cake demand next year=1,267,498.05 units rounded off to the nearest unit=1,267,498 units

5 0
3 years ago
Ric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of hol
lutik1710 [3]

Answer: An investment that matures in five years

Explanation:

Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.

This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.

4 year investment

= 1,000 / (1.068)^4

= $768.63

5 year investment

= 1,000 / (1.068)^5

= $719.69

The 5 year investment will have a lower present value and will be charged lower.

4 0
2 years ago
Other questions:
  • Working capital cash flow. Cool​ Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11​% of the mon
    6·1 answer
  • Sue, a resident of the state of New York, is visiting her aunt in Iowa. On her way, her car is hit by Jerry, a resident of the s
    12·1 answer
  • Who controls the supply of money in the United States today? A. The United States Treasury B. The Federal Reserve System C. Cong
    7·2 answers
  • Laura and Bryce both want to be able to forward receipts to QuickBooks Online to take advantage of the Receipt Capture feature.
    7·1 answer
  • 4. In the late 1990s and through 2000, the British public became increasingly concerned about " Mad Cow Disease," which could be
    12·1 answer
  • _____ are observable, statistical aspects of populations including such factors as age, gender, or income. Group of answer choic
    5·1 answer
  • Which of these is the result of a government-regulated natural monopoly?
    15·2 answers
  • In the context of the pre- and postproduction services perspective of a value chain, which of the following statements is true o
    13·1 answer
  • Evaluate the benefits and limitations of the change to the operations process being planned by the managing director.
    10·1 answer
  • What should designers gain from a critique that will enable them to improve their work?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!