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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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Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest
Allisa [31]

Answer:

certificate of deposit

Explanation:

A certificate of deposit (CD) is a financial instrument sold by banks

The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023

The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.

As this is a financial instrument, the bank issued a title to the investor to recognize his investment.

7 0
3 years ago
Read 2 more answers
What is the nash equilibrium for this​ game?
NeTakaya
<span>The  nash</span> equilibrium would be A. <span> bp and the mini-mart will both not advertise.
The nash equilibrium happens when all of the competitors choose the decision that give the optimal outcome for both of them.
If Bp and mini-mart both choose not to advertise they both will have a similar profit.</span>
4 0
3 years ago
When a non-price factor changes--such as technology, expectations, prices of related goods, prices of inputs, or the number of s
ludmilkaskok [199]

Answer:

The answers are:

  1. D) Supply and the entire curve shifts.
  2. D) Quantity supplied and the supply curve does not shift.

Explanation:

1. When non price factors (that affect the supply of a product) change, then the whole supply curve shifts and the quantity supplied will vary.

For example, new machinery that produces goods in a more efficient way, will shift the entire supply curve to the right. Suppliers will be able to produce more goods at the same costs.

2. A change in the amount of goods produced due to a change in price, is a change in the quantity supplied of that product. Suppliers will produce more goods at higher prices. But those changes in the quantity supplied happen follow the supply curve.

5 0
3 years ago
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.2 pound
Eduardwww [97]

Answer and Explanation:

The computation of the contribution margin per pound for each of the three products is shown below:

As we know that

Selling price per pound - Variable cost per pound = Contribution margin

For Product K1

= $155.8 - $91

= $64.8

For Product S5

= $108.92 - $90

= $18.92

For Product G9

=$205.55 - $136

= $69.55

Now the contribution margin per pound is  

For Product K1 = Contribution margin ÷ Pound  

                       = 64.8 ÷ 4.2  

                       = 15.43 per pound

For Product S5 =  Contribution margin ÷ Pound  

                        = 18.92 ÷ 4.1  

                        = 4.61 per pound

For Product G9 = Contribution margin ÷ Pound

                          = 69.55 ÷ 5.3

                          = 13.22 per pound

6 0
2 years ago
What annual rate of return would Jia need to earn if she deposits​ $20,000 per year into an account beginning one year from toda
Nimfa-mama [501]

Answer:

3.12%

Explanation:

We use formula in excel to calculate annual rate of return

Rate = (Nper,PMT,,FV,1)

Nper (number of payments): 30

PMT (payment made every period) : -$20,000

FV (future value of investment): $1,000,000

type 1 for payment beginning of period

Then rate = (30,-20000,,1000000,1)= 3.12%

Please see excel attached for the calculation

Download xlsx
5 0
3 years ago
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