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
adoni [48]
3 years ago
10

The Cozy Chair Company believes it can sell 200 chairs at $200 per chair, or 300 chairs at $150 per chair. Using the midpoint fo

rmula, you can calculate that the price elasticity of demand (to the nearest tenth) for Cozy Chairs is:___________
Business
2 answers:
rusak2 [61]3 years ago
4 0

Answer:

1.4

Explanation:

Given that

Q1 = 200

P1 = $200

Q2 = 300

P2 = $ 150

Recall that

Midpoint formula = Q2 - Q1/(Q2 + Q1)/2 ÷ P2 - P1/(P2 + P1)/2

= 300 - 200/(300 + 200)/2 ÷ 150 - 200/(150 + 200)/2

= 100/250 ÷ -50/175

= 0.4 ÷ 0.285

= 1.4

Oduvanchick [21]3 years ago
3 0

Answer:

1.4 elastic

Explanation:

the midpoint formula for calculating price elasticity of demand (PED) is:

PED = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(300 - 200) / [(300 + 200) / 2]} / {(150 - 200) / [(150 + 200) / 2]}

PED = (100 / 250) / (-50 / 175) = 0.4 / -0.29 = -1.4* ⇒ 1.4 price elastic

PED measures how the quantity demanded of a price changes in proportion to a change in its price:

  • PED > 1, price elastic, meaning that a 1% change in price will result in a proportionally larger change in quantity demanded
  • PED < 1, price inelastic, meaning that a 1% change in price will result in a proportionally smaller change in quantity demanded
  • PED = 1, price unit elastic, meaning that a 1% change in price will result in a proportionally equal change in quantity demanded

*PED is measured in absolute terms.

You might be interested in
Luxury Dwellings Inc. is a condominium-building company that is based in the country of Veritas. Itsells high-priced homes to co
meriva

Answer:

A) international

Explanation:

Luxury Dwellings knows that their clients are wealthy individuals from their home country Veritas and specially from foreign countries. That is why they are not worried about local economic conditions and about varying costs. Since their brand if highly recognized overseas, they are more worried about satisfying their international clients.

This is very common in vacation destinations, including some in the US, like Miami. Many luxury real estate companies located in Miami carry out marketing campaigns in European, Asian and Latin countries more than in domestic markets.

7 0
3 years ago
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it
Natalka [10]

Answer:

$13,000

Explanation:

Calculation for what The ending balance of the Work in Process Inventory account for the Fabricating Department is:

Beginning Balance 10,000

Add Direct Materials 76,000

Add Direct Labor 24,000

Add Factory Overheads 12,000

(50% *24,000)

Less Work Transferred (109,000)

Ending Balance $13,000

Therefore The ending balance of the Work in Process Inventory account for the Fabricating Department is:$13,000

6 0
3 years ago
A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the
Liula [17]

Answer:

2

Explanation:

As a result of the weather, the demand for chocolate increases. the demand curve shifts to the right. there is an increase in equilibrium price and quantity

As a result of the channels closing, the supply of imported cocoa falls. As a result, supply decreases. the supply curve shifts to the left

5 0
2 years ago
The birthday rule is used to determine the:
-Dominant- [34]

Answer:

9.11

xplanation:㏒

The coinsurance amount is 9.11.  

Birthday of the dependent child is 1939-1945.

Date to play a claim is 1914-1918

Primary and secondary policy holders is 7/11.

<h2>Hope this helps! (: STAY SAFE AND BLESSED </h2>
8 0
2 years ago
1. Which of the following events would make it more likely that a company would call its outstanding callable bonds? a. The comp
muminat

Answer:

The answer is letter C

Explanation:

Market interest rates decline sharply.

6 0
3 years ago
Other questions:
  • Which of the following types of business does not require an attorney to set up?
    11·2 answers
  • You know the _____ method of budgeting is being employed after hearing an experienced marketing department manager respond to a
    7·2 answers
  • Suppose the fed sells​ $100 of government securities. if the desired reserve ratio is 20 percent and there is no currency​ drain
    6·1 answer
  • Which of the following types of insurance do businesses frequently offer as part
    14·2 answers
  • What kind of inventory tracking system shows the cost and gross profit margin in
    12·1 answer
  • The calculations for some profitability ratios are the same as the calculations for common-size analysis of the income statement
    7·1 answer
  • John Deere is a manufacturer of agriculture equipment. Deere supplies replacement parts to dealerships across the globe. John De
    14·1 answer
  • identify five of his weaknesses and suggest one area of improvement for each five of his weaknesses and suggest one area of impr
    13·1 answer
  • Highlight clues that reveal the point of view of the narrative.
    6·2 answers
  • Jack Dossey wears socks of two colours - Yellow and Orange. He has altogether 20 yellow socks and 20 orange socks in a drawer. S
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!