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VikaD [51]
3 years ago
11

You own a small store. Your cashier thinks you should lower prices to increase your total revenue and your friend thinks you sho

uld increase prices to increase your total revenue. The cashier thinks the price elasticity of demand is ________ and the friend believes the price elasticity of demand is ________.
A. elastic;inelastic
B. inelastic; elastic
C. elastic; elastic
D. unit elastic; elastic
Business
1 answer:
Helga [31]3 years ago
7 0

Answer:

<u>A. elastic;</u> <u>inelastic </u>

Explanation:

Price elasticity of demand refers to degree of responsiveness of quantity demanded of a good with respect to a change in the price. It is mathematically expressed as:

\frac{dQ}{dP} \ *\ \frac{p}{q}

wherein dQ= Change in quantity demanded

              dP = Change in price

              p = Original Price

              q = Original quantity

Total revenue refers to total receipts of a firm from the sale of a good.

When price elasticity of demand is less than 1, it refers to inelastic demand which further means, the change in quantity demanded is less w.r.t change in price.

Similarly, when price elasticity of demand is greater than 1, it signifies change in quantity demanded is more w.r.t change in the price.

In the given case, the cashier thinks lowering prices will increase the total revenue. This indicates the cashier believes the demand to be elastic.

Similarly, the friend's belief of increased prices leading to increased total revenue signifies inelastic demand.

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Explanation:

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Answer:

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<em>Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period. </em>

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3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider <u>ratios</u>.

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6 0
2 years ago
Energizer emphasizes the importance of a relationship marketing. Why?
bearhunter [10]
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4 0
3 years ago
You just took out a​ $12,000 loan for your small business. the loan has a four year term and repayment is in the form of four eq
umka2103 [35]
Answer:  $403.20

Explanation:


We use a mortgage calculator to calculate the interest paid in the final payment. Since each repayment is made at the end of year, the repayments are annual payments. So, the calculator should have an annual amortization schedule to solve the problem.

I used http://www.calculator.net/loan-calculator for the calculation because it has an annual payment schedule. Then, I went under the subtitle Paying Back a Fixed Amount Periodically because the payments are equal. In that online calculator, I just input these data:

- Loan Amount: $12,000
- Loan Term: 4 (Loan term is number of years to pay the loan)
- Interest Rate: 11.5%
- Compound: Annually (APY) 
- Pay Back: Every year

Then, I clicked the calculate button and view amortization table. The annual amortization schedule is attached in this answer. 

To determine the interest paid at the final payment, I looked at payment #4 because the final payment is at the 4th year. (The loan is paid in 4 annual payments).

As seen in the attached image, the interest paid in payment #4 is $403.20. Hence, the interest paid in the final payment is $403.20.

3 0
3 years ago
A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%. Which is true? The investm
irga5000 [103]

Answer:

The correct answer is B: The investment has a future value of $8,053

Explanation:

Giving the following information:

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.

We need to calculate the final value of the investment. We will use the following formula:

FV= PV*(1+i)^n

FV= 5,000*1.10^5= $8,052.55

3 0
3 years ago
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