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Mashcka [7]
3 years ago
14

Suppose a local bank increases the fees they charge for their bank accounts by 5 percent. in​ response, the demand for their ban

k accounts decreases from 30 comma 000 to 2 comma 500. what is price elasticity of demand for this​ bank's accounts? using the midpoint​ formula, the price elasticity of demand is
Business
1 answer:
sammy [17]3 years ago
8 0

Answer:

-0.34

Explanation:

Given that,

Percentage increase in prices = 5%

Initial quantity demanded = 30,000

New quantity demanded = 2,500

By midpoint method,

Average quantity :

= (Initial quantity  + New quantity) ÷ 2

= (30,000 + 2,500) ÷ 2

= 16,250

Change in quantity = (2,500 - 30,000)

                                = -27,500

Therefore, the price elasticity of demand is as follows:

= (Change in demand ÷ Average quantity demanded) ÷ Percentage increase in prices

= (-27,500 ÷ 16,250) ÷ 5

= -1.69 ÷ 5

= -0.34

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5 0
1 year ago
How do Keynesians and classicals differ in their beliefs about how long it takes the economy to reach​ long-run equilibrium? Wha
andre [41]

Answer: Rapidly; Not Necessary

Explanation:

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Anti-recessionary policies are implemented by the Government to try to get the economy back to the long run equilibrium as soon as possible and Keynesian Economists support this because the believe that if help is not given, the economy will take too long to adjust on its own. Classical Economists are against this and see no need for such policies because they maintain that the economy adjusts and reaches the Long run equilibrium rapidly meaning that such policies are not necessary and would just be a waste of resources as well as a way for the government to exert more influence on the economy which is another thing they are against as well.

4 0
3 years ago
Pat bought 5 pounds of apples. How many pounds of pears could Pat have bought for the same amount of money?
Travka [436]

Answer:

0.33 pounds of pears

Explanation:

Let the price of 1 pound of apple (Pa) be =  $1

1. So, price / pound of pear (Pp) = 0.5 more = $1 + $0.5 = $1.5

Expenditure (E) on 5 pounds of apples = P x Q =  5 x $1 = $5

Pears pounds purchase-able by same amount i.e $5 = E/ Pp = 5 /1.5= $0.33

2. ∵ Pa = $1 , ∴ Pp = 1.5 times = $1.5

E on 5 Pa = $5

Pears pounds purchase-able by same amount i.e $5 = E/ Pp = 5 /1.5= $0.33

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Answer:

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Add: Additional costs = $10,000

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In a high rise 100-unit apartment building there is a basement laundry area that brings in $100 monthly from the concessionaire.
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