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Amiraneli [1.4K]
3 years ago
9

If 20 percent increase in the price of a good leads to a 60 percent decrease in the quantity demanded, then what is the price el

asticity of demand?
Business
1 answer:
sp2606 [1]3 years ago
7 0

Answer:

3

Demand is elastic

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

60 / 20 = 3

Demand is elastic because the coefficient of elasticity is greater than 3.

This means that a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

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Endor Company begins the year with $110,000 of goods in inventory. At year-end, the amount in inventory has increased to $118,00
Arada [10]

Answer:

11.40

32 days

Explanation:

Inventory turnover and days of sales of inventory are examples of activity ratios.

They are used to measure the efficiency of performing daily tasks

inventory turnover =  Cost of goods sold/ average inventory

Average inventory = ($118,000 + $110,000) / 2 = $114,000

Inventory turnover =  $1,300,000 / $114,000 = 11.40

days of sales of inventory = 365 / inventory turnover = 365 / 11.40 = 32 days

5 0
3 years ago
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DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

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This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

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r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

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t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
what are the intangible property that is protected by law which an enterpreneur should consider when starting up a business​
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Answer:

Several types of intanigle property, also known as intangible assets, are protected by law. The three main types are: copyrights, patents, and trademarks.

A copyright is a protection of a creative work like a book, a song, or a film

A patent is a legal protection for a scientific or technological invetion.

And a trademark is a protection of a phrase, name, brand, or symbol that identifies a particular company.

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Frictional unemployment is the result of voluntary employment transitions within an economy.
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