All categories

2 years ago

Elastic demand exists when:

Business

1 answer:

arlik [135]2 years ago

6 0

Answer:

B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is elastic if a small percentage decrease in price produces a larger percentage increase in quantity demanded . Total revenue would increase because the percentage increase in Quanitity demanded exceeds the percentage decrease in price.

If demand is elastic, a small percentage increase in price produces a larger percentage decrease in quantity demanded and total revenue increases.

Here, total revenue falls because percentage decrease in price exceeds the percentage increase in price.

Demand is inelastic if a small percentage decrease in price produces a smaller percentage increasein quantity demanded.

Demand is perfectly inelastic if the quantity demanded remains the same regardless of level of price.

I hope my answer helps you

You might be interested in

If Company A has a shareholders' deficit, which of the following can it do to improve its debt-to-equity ratio?

sertanlavr [38]

Answer:

sell off part of its inventory and or equipment

Explanation:

Debt/Equity=

Total Shareholders’ Equity /

Total Liabilities

6 0

2 years ago

When Sheri, a socialite, got some bad publicity for her recent choice of evening wear, she decided to change designers. However,

valentinak56 [21]

Answer:

The correct answer is the option C: Relational switching cost.

Explanation:

To begin with, the concept known as <em>''switching cost'' </em>in the field of business, basically refers to all the costs involved in the procedure of switching from a supplier to a new one. Moreover, this term also involves many different types, such as financial switching costs, procedural switching costs and relational switching costs.

To continue, the third one, <em>the relational switching cost</em> refers to the situation where a company has changed its supplier and a big loss of identification and emotional bonds changed as well with it. Furthermore, when relational switching costs take place the personal relationships between the people involved in the transactions of the company are lost and that generates an impact in the new relationships with the new supplier.

5 0

2 years ago

What are the differences between flexibility and compromise

marin [14]

Answer:

Flexibility mean you're more flexible about doing something. For example you could have flexible working hours which would mean you can work alot of the time like you can bend easily around when you work and compromise means you're wiling to meet in the middle so an agreement made that makes everyone happy.

5 0

2 years ago

Which of the following is a true statement?

Yuki888 [10]

Answer:

I think it's C, New products bring great rewards with little risk

3 0

2 years ago

To figure out what type of tests you are best at, you should

RUDIKE [14]

Take a small quiz of each subject and have someone grade it and then you will know the answer to your question

3 0

2 years ago

Read 2 more answers