Answer:
PED = -0.4 or |0.4| in absolute terms
Explanation:
price elasticity of demand (PED) = % change in quantity demanded / % change in price
- % change in quantity demanded = [(30 - 50) / 50] x 100 = -40%
- % change in price = [($24 - $12) / $12] x 100 = 100%
PED = -40% / 100% = -0.4 or |0.4| in absolute terms
the demand is price inelastic since |0.4| < 1
this means that the change in quantity demanded is proportionally less than the change in price.
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Explanation:
The free enterprise system is one influenced by the market, which will determine all economic variables, such as price, products and services, and is a system independent of government control to function.
Therefore, it is correct to state that in a free enterprise system, the offer and demand of the consumer for a product or service that will be the determinant of the success or failure of an organization.
As an example of an entrepreneur, we can mention Steve Jobs, who created one of the largest technology companies in the world, Apple. The free enterprise system was one of the reasons for Apple to succeed in becoming one of the most valued companies in the world, due to the fact that it brought innovative products to the market that became examples of products of value to consumers, which made company to grow and become so successful in the market. If the company operated in a government-controlled market, it would probably have to follow specific rules and restrictions for the production of its products that could limit the company, and its performance could be restricted and not as innovative as the company in the market, which is one of the reasons why it achieved success.
