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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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4 years ago

If the company plans to amortize these costs according to gaap, what amount of start-up costs should be amortized in 2017, assum

DerKrebs [107]

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3 years ago

When the price of good a increases, the total revenue from good a is unchanged. from this we know that the demand for good a is:

DaniilM [7]

When the price of good a increases, the total revenue from good a is unchanged. From this we know that the demand for good a is unitary elastic

Whenever the change in the price of a good occurs there is a change in the demand of the good as well. This certainly affects the revenue generated from that good.

This change in demand can be mainly classified into different types i.e. elastic, inelastic and unitary.

However, unitary elastic demand is the one in which change in the price causes exact proportionate change in the demand as well. This means that the revenue generated from the good remains unchanged.

In other words, the good is being consumed in the same amount and price has not affected the consumption.

If you want to know more about the unitary elasticity demand, click here
brainly.com/question/14299595

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2 years ago

NEED HELP! (These 3 question are all connected to each other)

mrs_skeptik [129]

Answer:

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Explanation:

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3 years ago

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irina1246 [14]

Answer:

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Explanation:

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Looking at things from the other person's perspective helps to reduce conflict, avoid wrong assumptions, and misjudgements.

Lorenzo has always wanted to be a health professional because he loves helping people. So he is exhibiting emphatic communication model even if he is at risk of burning out.

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4 years ago