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Korvikt [17]
3 years ago
5

Gus buys cupcakes every saturday morning. when he walks into the bakery, he always orders by saying, "give me $10 worth of cupca

kes." what does this tell you about gus's elasticity of demand for cupcakes?
Business
1 answer:
Nadya [2.5K]3 years ago
6 0

Elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

a. Perfectly elastic - The good is perfectly elastic when the consumer is ready to buy any quantity at a fixed price.

b. Perfectly inelastic- The good is perfectly inelastic when the change in the price of the good has not effect on its demand, that is when quantity demanded is same at whatever price.

So, because here Gus is ready to buy any units of cupcakes at a fixed price of $10, the demand for cupcakes should be perfectly elastic.

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4 years ago
A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the
gregori [183]

Answer:

Decrease, $350000.

Explanation:

Given: Corporation purchases 10000 shares for $35 per share.

Now, calculating cost of common stock.

Cost of common stock purchased = 10000\times 35= \$ 350000

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4 years ago
In risk management, removing the source of a risk is called:
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Risk avoidance

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3 0
3 years ago
Define liquidity risk and explain how it relates to bonds and bond yields.
nadya68 [22]

Answer:

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(If some parts overlap/relate to the exactly to other parts, I'm sorry. But there ya go !)

5 0
3 years ago
When positive externalities exist in the consumption of a good, the marginal social benefit: Multiple Choice could be either gre
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The Marginal social benefit refers to all benefits received from a positive externality which means that this includes the marginal benefits provided to consumers of the good as well as the marginal benefit to third parties.

3 0
3 years ago
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