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ivolga24 [154]
3 years ago
13

If the price elasticity of demand coefficient is 4, then:a. a price increase of 1% will reduce quantity demanded by 1/4%b. A pri

ce increase of 1% will reduce quantity demanded by 4%c. A price increase of 1% will reduce quantity demanded by 1/4%d. A price decrease of 1% will reduce quantity demanded by 1/4%
Business
1 answer:
andrew11 [14]3 years ago
5 0

Answer:

A price increase of 1% will reduce quantity demanded by 4%

Explanation:

If the price elasticity is 4 then, this demand is highly responsive to changes in price.

So it will decrease by more than the price increase.

we must remember that the price-elasticity is determinate  like:

↓QD / ΔP   = price-elasticity

if the cofficient is 4 then a 1% increase in price:

↓QD / 0.01 = 4

↓QD = 0.04

Quantity demanded will decrease by 4%

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Fidelity Stereo Company has provided the following information regarding its activity-based costing system:Purchasing department
VikaD [51]

Answer:

a. $392, 265

Explanation:

Given that:

i. Purchasing department, overhead allocation rate is $77 per purchase order.

ii. Assembly department, overhead allocation rate is $5 per part.

iii. Packaging department, overhead allocation rate is $4 per unit.

iv. Direct material cost is $70 per unit.

v. Each stereo has 50 parts.

Total parts required = 1200 x 50

                                 = 60000

vi. 45 purchase order was required for 1200 stereos.

Thus:

i. $77 x 45 = $3465

ii. $5 x 60000 = $300000

iii. $4 x 1200 = $4800

iv. $70 x 1200 = $84000

Therefore,

total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000

                                            = $392, 265

8 0
3 years ago
A broker desires to keep an escrow account in an interest bearing account. Would this be legal?
wolverine [178]

Answer:

the correct answer is YES

Explanation:

All parties agree and get in writing who and where the money is going

GOOD LUCK

7 0
3 years ago
Item 15Item 15If Beck's Bicycles, Inc.'s income statement shows gross profit of $350 million, with operating expenses of $120 mi
Alinara [238K]

Answer:

$161 million

Explanation:

Given that,

Gross profit = $350 million

Operating expenses = $120 million

Tax rate = 30%

First, we need to find out the income before taxes by subtracting operating expenses from the gross profit then we are able to determine net income after taxes.

Income before tax:

= Gross profit - Operating expenses

= $350 million - $120 million

= $230 million

Net income after taxes:

= Income before tax - Taxes

= $230 million - (0.30 × $230 million)

= $230 million - $69 million

= $161 million

8 0
3 years ago
Which of the following actions would the Federal Reserve most likely take to rein in spiraling inflation?
ryzh [129]
The right answer for the question that is being asked and shown above is that: "Increase reserve requirement." The <span>action that would the Federal Reserve most likely take to rein in spiraling inflation is that of </span><span>Increase reserve requirement.
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The right answer for the question that is being asked and shown above is that: "<span>Increase reserve requirement." </span>
5 0
3 years ago
Read 2 more answers
In tort law, what is proximate cause?
zloy xaker [14]

Answer:

B

Explanation:

Proximate cause means “legal cause,” or one that the law recognizes as the primary cause of the injury. ... In other words, the plaintiff will have to show that the injuries were the natural and direct consequence of the proximate cause, without which the injuries would not have occurred.

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