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Inessa [10]
3 years ago
8

If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quanti

ty demanded change, and in what direction
Business
1 answer:
elixir [45]3 years ago
6 0

Answer:

The quantity demanded will decrease by 2%.

Explanation:

This can be determined using the elasticity formula as follows:

e = Percentage change in quantity demanded change / Percentage change in price ........ (1)

Where;

e = elasticity of demand for college textbooks = -0.1

Percentage change in quantity demanded change = ?

Percentage change in price = 20%

Substituting the values into equation (1) and solve for Percentage change in quantity demanded change

-0.1 = Percentage change in quantity demanded change / 20%

Percentage change in quantity demanded change = -0.1 * 20% = -0.02, or -2%

Since the Percentage change in quantity demanded change is negative 2%, it implies that the quantity demanded will decrease by 2%.

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Explanation:

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Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
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Answer:

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Answer:

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Ending Inventory     5,000     6,000     2,000       0

b. Monthly financing cost = $540

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Explanation:

a) Data and Calculations:

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Beginning Inventory    0          5,000     6,000    2,000

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7 0
2 years ago
Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Per
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A
Andrej [43]

Answer:

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Explanation:

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