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Aleksandr [31]
3 years ago
10

At a specific point on the demand curve for backpacks, the elasticity of demand is calculated to be -0.5.a. At that point, we wo

uld describe demand as ( inelastic / elastic / unit elastic / fully supplied ).b. If the price of backpacks fell by 10%, the quantity demanded would rise by (10% /5% / 50% / 0% ) and revenue for the backpack industry would ( fall / rise) remain the same .c. If the price of backpacks rose by 20% the quantity demanded would fall by ( 20% / 10% / 25% / 40%) and revenue for the backpack industry would ( fall / rise) remain the same

Business
2 answers:
Kipish [7]3 years ago
8 0

Answer: A. Elastic , B. 5% Rise , C. 10% fall

Explanation:

the price elasticity for a normal good is negative. wen price increases  demand decreases.

demand is elastic a change in price will cause a change in  demand

a 10% decrease in in the price of backpacks will cause a 5% increase in demand and the revenue will rise.

a 20% increase in the price will cause a 10% decrease/fall in demand and revenue will fall

workings

change in demand when price decrease by 10% = -0.5(-10%) = 5%

change in demand when price increase by 20% =  -0.5(20) = 10%

anzhelika [568]3 years ago
4 0

Answer:

Inelastic; 5%; fall; 10%; rise

Explanation:

Price elasticity of demand is always negative for normal goods. This happens because of the law of demand, that demand falls with rise in price.

Price elasticity between 0 and 1 shows inelastic demand.

This means that there is smaller change in demand due to a greater change in price level.

Price elasticity of demand is -0.5.

If the price falls by 10%, demand will increase by 5%.

The revenue will fall, because of greater fall in price.

If the price increases by 20%, demand will fall by 10%.

Revenue will increase because of greater increase in price.

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anygoal [31]

Answer:

where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

Explanation:

Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.

It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

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What lessons are we to learn from this?

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