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Inessa [10]
2 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]2 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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fenix001 [56]
Being able to work with a team is important
7 0
3 years ago
Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $40
LiRa [457]

Answer:

$38.40

Explanation:

Target Cost = Selling Price per Unit - Profit Margin per Unit

Here, Selling Price per Unit = $40

Profit Margin = 16% of the Investment in Product

Investment = $ 300,000

Profit Margin = 16% × 300,000

                      = $48,000

Number of Units Sales = 30,000 Units

Profit Margin per Unit:

= Profit Margin ÷ Number of Units Sales

= $48,000 ÷ 30,000

= $1.6

Therefore,

Target Cost per Unit:

= Selling Price per Unit - Profit Margin per Unit    

= $40.00 - $ 1.60

= $38.40

6 0
2 years ago
The strong form of the efficient market hypothesis contends thatA) a select few institutional investors can earn abnormal profit
Anni [7]

Answer: Option D

 

Explanation: Strong form efficiency is the most stringent form of market efficiency. This hypothesis states that the securities in the market reflects all the information in their price whether public or private.

Therefore, any investor would not be able to earn abnormal returns no matter how much research he or she has done. As the securities reflects private information also, therefore, insider trading will also be useless.

Hence from the above we can conclude that the correct option is D.

5 0
3 years ago
Stopher Incorporated makes a single product. The company has a standard cost system in which it applies overhead to this product
DaniilM [7]

Answer:

$1.19 per machine-hour

Explanation:

Variable component of the predetermined overhead rate =

Budgeted variable overhead $ 45,220

÷

Budgeted production 20,000 units ×Standard machine-hours per unit 1.90 machine-hours =38,000

Hence:

$45,220/38,000 machine-hours

= $1.19 per machine-hour

Therefore the variable component of the predetermined overhead rate is closest to: $1.19 per machine-hour

5 0
3 years ago
The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted bac
almond37 [142]

Answer:

The given statement is "True".

Explanation:

  • The bullwhip effect has been characterized as either the production disruption that flows upstream again from supplier to something like the wholesaler as well as a distributor throughout the production process, given the differences of shipments that might have been broader than those of revenues.
  • Because these, upstream advertisers usually experience a reduction in prediction performance while the gap between some of the consumer as well as the supplier grows.
6 0
3 years ago
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