1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vivado [14]
3 years ago
15

A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and...?

Business
1 answer:
creativ13 [48]3 years ago
7 0

Answer:

The correct answer is (d) Decrease total revenues from X and Y by $600

Lets first calculate change in revenue due to good X

TR = P*Q

where TR = Total revenue , P = Price and Q = Quantity

Formula :

% change in (A*B) = % change in A + % change in B

Thus % change in TR = % change in (P*Q) = % change in P + % change in Q

Own Price Elasticity of demand of X = % change in quantity of X / % change in Price of X

It is given that, Own Price Elasticity of demand of X = -4 and % change in Price of X = -2% (negative sign means that price has decreased)

Hence, -4 = % change in quantity of X / (-2) => % change in Quantity of X = 8%.

Here % change in Q = 8% and % change in P = -2%

% change in (TR) = % change in (P*Q) = % change in (P) + % change in (Q) = -2 + 8 = 6%

Hence Revenue due to good X increases by 6%.

So change in revenue due to Good X = 6% of 10,000 = (6/100)*10000 = 600

Now Lets first calculate change in revenue due to good Y

TR = P*Q

where TR = Total revenue , P = Price and Q = Quantity

Formula :

% change in (A*B) = % change in A + % change in B

Thus % change in TR = % change in (P*Q) = % change in P + % change in Q

Cross Price Elasticity of demand between X and Y = % change in quantity of Y / % change in Price of X

It is given that, Cross Price Elasticity of demand between X and Y = 2 and % change in Price of X = -2% (negative sign means that price has decreased)

Hence, 2 = % change in quantity of Y / (-2) => % change in quantity of Y = 2*(-2) = -4.

Here % change in Q = -4% and % change in P = -2%

% change in (TR) of good Y = % change in (P*Q) = % change in (P) + % change in (Q) = -2 + (-4) = -6%(negative sign means that TR will decrease)

Hence Revenue due to good Y decreases by 6%.

So change in revenue due to Good Y = -(6% of 20,000) = (6/100)*10000 = -1200 (negative sign means that revenue will decrease)

Hence Overall change in total revenue = Change in Revenue due to good X + Change in Revenue due to good Y

=> Overall change in total revenue = 600 + (-1200) = -600

Hence Overall Revenue will decrease by 600

Hence, the correct answer is (d) Decrease total revenues from X and Y by $600

Explanation:

You might be interested in
U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance,
kvv77 [185]

Answer:

U.S. appliance manufacturers would be more likely successful if they used a <u>Transnational</u> marketing strategy

Explanation:

Transnational marketing strategy is a more personalized approach to selling and marketing with target customers need, shopping preferences and specifications put into consideration in the designing of the goods and services.

This strategy applies to the U.S. appliance manufacturers selling to different countries.

Therefore, people in Northern Europe who shop only once a week will be presented with bigger refrigerators while Southern Europeans who shop daily can opt for smaller ones.

7 0
3 years ago
Controlling is the process of assuring actual activities conform to planned activities. With an example, discuss five (5) import
kondor19780726 [428]

Answer:

Controlling is the process of assuring actual activities conform to planned activities with five examples are discussed below in details.

Explanation:

Planning and controlling are intimately associated. Controlling is further pervasive than planning. Controlling benefits managers observe the effectiveness of their planning, formation, and managing activities.  It not only assists in maintaining a record on the development of activities but also guarantees that activities adhere to the measures set in approach so that organizational aims are achieved.

3 0
3 years ago
Which of the following describes the activities that play an important role in connecting brands to consumers in the final phase
expeople1 [14]

The activity that play an important role in connecting brands to consumers in the final phases of the buying process is C. Retailing.

<h3>What is the role of retailing in the buying process?</h3>

Retailing refers to the set of activities that allow for  consumers to be able to access goods and services that were produced by different companies and brands. The process of retailing often comes in the final phases of the buying project as it involves the consumers who are the end stage of the buying process as they are the ones to consume the goods and services being sold.

Retailing is therefore hugely important because it connects the brands to the consumers that they serve . Without retailing, companies would make products and services and be unable to sell them to anyone as they would not have any connection to the final consumers .

Find out more on retailing at brainly.com/question/29357664

#SPJ1

8 0
1 year ago
Which investment type typically carries the least risk?
AleksandrR [38]
The investment type that typically carries the least risk is saving account
7 0
3 years ago
I.b. glowen is an engineer who works in nuclear power plants. he is considering starting his own engineering company. over the l
PIT_PIT [208]
<span>The corporation would be the most suitable for Mr. Glowen. This would shield him from liability in the event that something negative were to occur. The liability for any and all debts would be taken by the company and not by the person himself.</span>
5 0
3 years ago
Other questions:
  • Upon seeing the fraser's spiral, most people must carefully trace one of the circles to confirm what is "real" in the design. th
    11·1 answer
  • PLEASE HELP
    6·2 answers
  • The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
    13·1 answer
  • Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared t
    6·1 answer
  • a customer holds 1000 shares of abc stock valued at 80 in a margin account. the debit balance in the account is 35000. abc decla
    14·1 answer
  • In 1923, koalas were introduced on kangaroo island off the coast of australia. In 1996, the population was 5000. By 2005, the po
    10·1 answer
  • Income Inequality, Poverty, and Discrimination affect the economy. Discuss their impact on the economy and what should be done b
    15·1 answer
  • Brian tried to persuade an unsatisfied customer to take a certain new line of action. After discussing Brian's plan, the
    5·1 answer
  • Describe two rights and two reposibilities as an employer
    11·1 answer
  • Simon bought a computer and made monthly payments. by the end of the month, simon had no money left for groceries. which step in
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!