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3 years ago

Elastic demand exists when:

Business

1 answer:

arlik [135]3 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

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3 years ago

Which of the following statements about the theory of sustainability is true?a. Sustainability is the idea that socially respons

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Answer:

The correct answer is option A.

Explanation:

Sustainability can be basically defined as the ability to last constantly.

The theory of sustainability tries to describe a type of society and economy that is long lasting and can be lived on a global scale.

Sustainability in business is the proposition that if the companies act responsibly towards the environment and the society, they will be able to outperform their peers. When they focus on the world's problems and see them as marketing opportunities they will be able to perform better than their peers.

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3 years ago

Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. Th

laila [671]

Answer:

$527,737

Explanation:

The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.

The Bond Parameters can be set as :

PV = - $5,259,870

FV = $5,700,000

PMT = ($5,700,000 x 8%) ÷ 2 = $228,000

N = 5 x 2 = 10

YTM = 10 %

P/YR = 2

Constructing an amortization schedule for 2020 gives :

Date Capital Portion Interest Balance

June 30 $34,994 $262,994 $5,294,864

Dec 30 $36,743 $264,743 $5,331,607

Total $71,737 $527,737 $5,331,607

therefore,

The amount of interest expense to be reported for 2020 is $527,737

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2 years ago

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Answer:

D. Limited partnership

Explanation:

This is an example of a limited partnership

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3 years ago

I am planning to reduce the duration of lunch break by 10 minutes. Does anyone have any objection to this policy? In the context

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Answer:

a) the leader presents ideas and invites questions.

Explanation:

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The example cited in the question is a way of taking decision by suggestions by expecting questions from his team.

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3 years ago