Answer:
price elasticity of demand
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
If this change in price (a 25% increase) leads to a 50% decrease in quantity demanded, demand is elastic and revenue would fall if price is increased
If this change in price (a 25% increase) leads to a 10% decrease in quantity demanded, demand is inelastic and revenue would increase if price is increased
Answer: Prevention cost is used to protect equipments and assets and as such is an investment.
Explanation:
Prevention cost like the name suggests is a cost incurred in the process of keeping a machine or equipment in a working condition to avoid a future breakdown which might lead to a loss in profit for the company. This is why it is referred to as an investment because it is done to prevent the loss of profit due to downtime a breakdow of the machine or equipment would cause.
Failure cost is a true cost because it arises from a loss incurred by the company through production or it capital invested in the business.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A concrete and rock crusher for demolition work has been purchased for $50,000, and it has an estimated SV of $10,000 at the end of its five-year life.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Book value= Original cost - accumulated depreciation
If all is held constant, it is expected that increase in the market demand for a product in a competitive market would result to an increase to the marginal cost (MC) curve of the firms.
<h3>What is an
increase in the market
demand?</h3>
An increase in market demand are caused by rise in income, rise in the price of a substitute, price fall of a complement product etc.
And when there is an increase in market demand, its reflects on the demand graph as the demand curve shift to the right.
Therefore, the Option E is correct.
Read more about market demand
<em>brainly.com/question/3331860</em>
Answer:
We will have $6488.6 in our account in 6 years.
Explanation:
The rate is 6.1% but it is compounded daily which means that the effective annual interest rate will be different to the stated rate. In order to find the EAR we will use the formula
(1+(R/N))^N)-1
In this case R=6.1% and N is 365 as there are 365 days in a year which means there will be 365 compounding periods as it is compounded daily.
We will put these values in the formula.
(1+(0.061/365))^365)-1
=(1.000167^365)-1=1.062893-1=0.062893
The Ear is 6.289%
Now in order to find how much we will have in our account in 6 years will use the formula
Future value = Present value *(1+Ear)^Number of years.
Future value = 4,500*(1+0.06289)^6=6488.6