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
natulia [17]
3 years ago
12

Consider firms that introduce new​ products, such as DVDs in 2001. When firms introduce new​ products, how do they typically det

ermine the price elasticity of demand for those​ products? Firms with new products often A. identify price elasticity of demand by using price controls to set price floorsfloors. B. approximate price elasticity of demand with market signals such as shortagesshortages. C. identify price elasticity of demand by asking for government assistance. D. estimate price elasticity of demand by experimenting with different prices. E. guess price elasticity of demand based on market competition.
Business
1 answer:
Svetach [21]3 years ago
4 0

Answer:

D. estimate price elasticity of demand by experimenting with different prices

Explanation:

Price elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

Demand is unit elastic if a change in price has the same proportional change on quantity demanded.

By experimenting with different prices and monitoring the different quantities demanded at each price, a new firm can determine the elasticity of demand for their product.

Price controls are set at the discretion of the government and not by firms.

Shortages imply they quantity demanded exceeds quantity supplied. It doesn't give any information on elasticity of demand.

I hope my answer helps you

You might be interested in
What is the percentage loss on the funds she invested if the interest payment is included in the calculation
adoni [48]

Answer with complete Question:

Barbara buys 130 shares of DEM at $33.00 a share and 190 shares of GOP at $37.00 a share. She buys on margin and the broker charges interest of 7 percent on the loan.

a. If the margin requirement is 42 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent.

$ 6,565.60

(Which is equal to 58(100 - 42)% of $11,320.)

b. If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round your answer to the nearest cent.

$  459.59 ($6,565.60 x 7%)

If after a year she sells DEM for $22.00 a share and GOP for $30.00 a share, how much did she lose on her investment? Use a minus sign to enter the amount as a negative value. Round your answer to the nearest cent.

$  2,760

What is the percentage loss on the funds she invested if the interest payment is included in the calculation? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places.

28.44 %

Explanation:

a. Data and Calculations:

DEM, 130 shares at $33.00 a share = $4,290

GOP, 190 shares at $37.00 a share =   7,030

Total value of investments = $11,320

Margin requirement = 42% of $11.320 = $4,754.40

Barbara can borrow $6,565.60 ($11,320 - $4,754.40)

1. Interest on borrowed fund (margin):

$6,565.60 x 7% = $459.59

2. Loss from Sale of:

DEM, 130 shares at $22.00 a share = $1,430 ($11 x 130)

GOP, 190 shares at $30.00 a share = $1,330 ($7 x 190)

Total loss from investments = $2,760

3. Percentage Loss, with interest included:

Interest on borrowed fund = $6,565.60 x 7% = $459.59

Total loss from investments =       $2,760.00

Total loss  = $3,219.59

Total value of investments = $11,320

Percentage Loss = $3,219.59/$11,320 * 100 = 28.44%

4 0
3 years ago
The depositors of JS bank were worried that the value of this​ bank's assets was less than the value of its​ liabilities, so the
MissTica

This expanding panic and rising flood of withdrawals is called Bank Run.

<u>Explanation: </u>

Bank run means many customers of the bank withdraw their deposits due to the fear that the bank might become insolvent. When many customers withdraw their funds then the bank might not be able to meet the withdrawals with the available funds.

This further increases the risk of the bank to default when all the customers withdraw their deposits. This is because the banks hold only little amount as cash in hand while the rest of the bank's wealth is invested in long term assets.

3 0
3 years ago
The financial statements for Watertown Service Company include the following​ items:20172016Cash​ $46,500​ $41,000Shortminus−ter
Ivahew [28]

Answer:

The working capital for 2017 is $15,500

Explanation:

Working capital: It shows a difference between the currents and the current liabilities

In mathematically,

Working Capital = Current Assets - current liabilities

where,

Total current assets = Cash + short-term investments + net accounts receivable + merchandise inventory

= $46,500 + $24,000 + $57,000 + $158,000

= $285,500

And, the current liabilities = Accounts Payable​ + Salaries Payable

                                           = $133,500 + $17,000

                                           = $150,500

Now put these values to the above formula  

So, the value would equal to

= $285,500 - $150,500

= $15,500

7 0
3 years ago
How are jobs affected by supply and demand ?Explain how changes in supply and demand couple impact employment and jobs?
Ksju [112]

Answer:

Please see explanation below

Explanation:

a. Just as supply and demand affects any other market, so does it affects jobs too. Take for instance if additional workers are added to the existing workforce while the demand for jobs remains the same; it means that employers would likely pay less which will bring about drop in income to employees hence causes less job stability. On the other hand, if there is an increase in demand for jobs while supply remains the same; then employers will be willing to pay more thereby resulting in higher income for few who are employed hence bring about job stability.

b. Change in demand refers to either an increase or decrease in demand for a particular good or service due to changes in consumer tastes, income level, population, price of substitutes etc; while change in supply is when suppliers decided to either increase or decrease their production or output due to changes in technology, process automation, change in the number of competitors in the market, taxes, production costs etc.

An increase in demand for certain goods or services would necessitate an increase in supply for such goods hence create avenue for producers or manufacturers to employ more people to produce them. Also, a decrease in demand for certain goods or services would result in less goods being produced hence lesser people getting employed to produce such goods.

On the other hand, when producers embraces new technology or process automation , the possibility of producing more goods will be higher while such would result in job losses.

3 0
3 years ago
Bledsoe Company received $15,000 cash from the issue of stock on January 1, 2013. During 2013 Bledsoe earned $8,500 of revenue o
kati45 [8]

Answer:

Total assets is increased by $18,100

Explanation:

The computation is shown below:

= Cash received from the issue of stock + revenue earned on account - cash paid for operating expenses

= $15,000 + $8,500 - $5,400

= $18,400

This positive amount shows that there is an increase in the total assets for $18,100

The cash collected from the account receivable is not relevant. Hence ignored it

5 0
2 years ago
Other questions:
  • Ring Company designs and builds jewelry. During June it had applied overhead of $120,000. Overhead is applied at the rate of 75%
    6·1 answer
  • Research results showed that experimental Drug R had a minimal-to-modest effect in reducing the symptoms of Generalized Anxiety
    13·1 answer
  • Using the profitability index method, the present value of cash inflows for project flower is $88,000 and the present value of c
    12·1 answer
  • Clinton and Trump on fiscal policy In the 2016 Presidential election​ campaign, both Hillary Clinton and Donald Trump committed
    9·1 answer
  • A. treats financial indicators as the sole measurement of performance B. evaluates performance based on organizational participa
    9·1 answer
  • To complete your degree and then go through graduate school, you will need $95,000 at end of each of the next 8 years. Your Aunt
    13·1 answer
  • WILL MARK BRAINLY!
    13·1 answer
  • How many people see fights at school and put the video on this
    5·1 answer
  • In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies
    11·1 answer
  • monopolistically competitive firms are unable to produce enough output to reach the average total cost because of the presence o
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!