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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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The name for computations that allow you to determine how much money to deposit now to earn a desired amount in the future is
nydimaria [60]

Answer:

Future value

Explanation:

The name for computation that allows you to determine how much money to deposit now to earn a desired amount in the future is "Future value." Future value is the equivalent of an asset at a particular date. It estimates specific nominal future sum of cash that an invested sum of money is "worth" at a stipulated period in the future considering a specific interest rate, or more commonly, rate of interest; it is the immediate price multiplied by the aggregation function.

5 0
3 years ago
In the video, Mike Boyle talks about establishing a work environment that motivates employees to do great work. List two or thre
Alex787 [66]

Answer:

Explanation:

the list of specific ways through which Mr. MB can establish the work environment which can motivate the employee in his gym are as follows;

Mr. MB can emphasize on the importance of creating effective work environment that motivate employees to work properly.

Mr. MB can develop strength program for employees.

Mr. MB can also introduce the proper sessions of new training technique and workout program for employees.

Education helps in the employee motivational and job enrichment in an effective way. It helps the employees by giving them opportunity to establish their skills. It also helps in enhancing their knowledge and progress through their position in the company. These knowledge and skills helps the employer gaining effective workforce. Education also provides some effective guideline that the employees or employer should follow.

4 0
3 years ago
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000
IceJOKER [234]

Answer:

It should continue the production in the short-run.

Explanation:

Given the unit produced by Mars Inc. = 100000 boxes.

The selling price of boxes = $4 per box.

The variable costs = $3 per box.

The fixed costs = $150000

The total sales revenue = number of boxes × selling price

= 100000 × 4

= $ 400000

In the short run, the firm should continue its production because it still covers the variable costs.

8 0
3 years ago
SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
PtichkaEL [24]

Answer:

(i) 1.57

(ii) 12.40%

(iii) $76,898.60

Explanation:

Debt-equity ratio = debt/equity

Hence debt= 0.57 equity

= (0.57 × 620000)

= $353,400

Total assets = debt + equity

                     = (353400+620000)

                    = $973400

1. Equity multiplier = Total assets ÷ Equity

                               = $973,400 ÷ 620,000

                               = 1.57

3.  ROA = net income ÷ Total assets

net income = ($973,400 × 0.079)

                    = $76,898.60

2. ROE = net income ÷ Total equity

= $76,898.60 ÷ 620,000

= 12.40%(Approx).

7 0
3 years ago
A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, d
ki77a [65]

Answer:

Intrinsic value is $114.30

Explanation:

Given:

Dividend paid = $8

Required rate of return = 7% or 0.07

There is no growth in dividends.

Calculate price of preferred share using DDM as shown below:

Price of preferred share = Dividend paid ÷ Required rate of return

                                          = 8 ÷ 0.07

                                          = $114.28 or $114.3

Therefore, price of preferred share is $114.30

6 0
3 years ago
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