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
Tju [1.3M]
3 years ago
15

A monopolist has four distinct groups of customers. Group A has an elasticity of demand of​ 0.2, B has an elasticity of demand o

f​ 0.8, C has an elasticity of demand of​ 1.0, and D has an elasticity of demand of 2.0. The group paying the highest price for the product will be
Business
1 answer:
Bumek [7]3 years ago
5 0

Answer:  Group A

Explanation:

Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.

The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.

You might be interested in
Why is your amount owed considered when determining your credit score?
ankoles [38]

Answer:

Owing cash on credit accounts doesn't really mean you're a high-hazard borrower with a low credit Score. Notwithstanding, when a high level of an individual's accessible credit is been utilized, this can show that an individual is overextended, and is bound to make late or missed installments.

The amount owed on different accounts decides 30% of the FICO score. Aside from the general amount owed, the FICO scores think about the amount claimed freely on explicit accounts. On the off chance that you utilize a noteworthy part of the credit you are qualified for, it can negatively affect the FICO scores. Be that as it may, utilizing a less amount from as far as possible allowed can give you a superior score than not utilizing the credit by any stretch of the imagination.  

3 0
3 years ago
A demand function for step stools manufactured by U-Step is q = -720p + 20,500.
meriva

Answer:

$140,420

Explanation:

The demand function is q = -720p + 20,500.

The price is $17

q = -720 ($17) + 20500 = 8260

The quantity sold is 8260

Revenue = price × quantity sold

= $17 × 8260 = $140,420

5 0
3 years ago
On december 31, 2015, cool wear inc. had balances in accounts receivable and allowance for uncollectible accounts of $41,000 and
Wewaii [24]

$6,000.00 - ($2,050.00 - $750.00) =

$6,000.00 - $1,300.00 = $4,700.00

Bad debt expense for 2019 would be: $4,700.00

6 0
3 years ago
PLEASE HELP!!
rusak2 [61]

Bitcoin, Equal Dollars, Ithaca Hours, Starbucks Stars, Amazon Coins, Sweat.

8 0
3 years ago
Sharon works for a cereal manufacturing company. Her company recently built a manufacturing facility in Canada and agreed to tak
sergejj [24]

Answer:

d. buyback

Explanation:

The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.

4 0
3 years ago
Other questions:
  • When increased raw material costs increase prices for consumers, the situation is known as _______ inflation. A. demand-pull
    8·1 answer
  • Different ____ levels and _______ requirements affect the choice of market entry
    7·1 answer
  • The following information for "2019" pertains to Bartley Corporation: Capital contributions by shareholders $50,000 Realized los
    8·1 answer
  • Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $10,900
    8·1 answer
  • Value chains are a sequence of firm(s) that produce agricultural inputs, raise and process food, and deal with transport and dis
    12·1 answer
  • Which statement best explains why this passage is an effective use of rhetoric?
    10·2 answers
  • A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised
    14·1 answer
  • Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10
    10·1 answer
  • Ben owns an ice cream shop. Last quarter's income was $9,000; his cost of goods was $575, and his total expenses were $5,000. Wh
    13·1 answer
  • Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return is
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!