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Bogdan [553]
4 years ago
13

A product’s point price elasticity has been estimated at –1.5. At the initial price of $20, the quantity demanded was 10 units.

If the firm cuts the price to $17.50, quantity demanded and sold is expected to increase by____________
Business
1 answer:
Leona [35]4 years ago
7 0

Answer:

Quantity demanded and sold expected to increased by 3.75 units.

Explanation:

Use Price elasticity of demand formula to calculate the quantity demanded and sold:

Price Elasticity of Demand = Change in the Quantity demanded / Chang in Price

- 1.5 = Change in the Quantity demanded / 17.50 - 20.00

- 1.5 = Change in the Quantity demanded / -2.50

-2.50 x -1.50 = Change in the Quantity demanded

Change in the Quantity demanded = 3.75

Quantity Demanded = 10 + 3.75 = 13.75

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3 years ago
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation
jarptica [38.1K]

Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter required: Calculate the estimated cost of workers' compensation insurance for the year.

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