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
nikklg [1K]
3 years ago
10

All else equal, the price elasticity of demand for a good tends to be lower: A. if the good represents a large share of a consum

er's budget. B. if the good has many close substitutes. C. if the good has few close substitutes. D. in the long run.
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer:

C. if the good has few close substitutes.

Explanation:

The price elasticity of demand refers to the percentage of change in the demand when the price suffers a variation. The price elasticity of the demand is higher when a change in the price of the product generates a big change in the demand which can be the result of the good having many substitutes. Also, the price elasticity of the demand is lower when a change in the price causes a small change in the demand which can be explained by the good having few substitutes. According to this, the answer is that all else equal, the price elasticity of demand for a good tends to be lower if the good has few close substitutes.

You might be interested in
Suppose that a firm has a price-earnings ratio which is higher than a value deemed to be normal. Investors tend to infer from th
Dmitrij [34]

Answer:

(C) The Firm's stock is overvalued and one should consider selling the stock

Explanation:

Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.

Price Earnings Ratio = \frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}

A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.

This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.

Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.

8 0
3 years ago
Which sentences describe characteristics of a partnership?
Dominik [7]
D sounds like the best answer
3 0
3 years ago
Read 2 more answers
Assume Metro Corporation had a net income of $ 2,200 for the year ending December 2018. Its beginning and ending total assets we
Aleksandr-060686 [28]

Answer:

The return on assets is 8.4%

Explanation:

In order to calculate the return on assets we will first need to find the average total assets. We will do this by adding the beginning and ending total assets and dividing it by 2.

Average total assets= (31,500+20,500)/2= 26.000

Now in order to find the return on assets we will divide the net income by the average total assets.

Return on assets = 2,200/26,000=0.084=8.4%

7 0
3 years ago
Alejandro has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there a
WITCHER [35]

Answer:

economic and legal

Explanation:

Out of all the options, this option fits the scenario the most and I just took the test.

5 0
3 years ago
This is for my principles of business class
Kazeer [188]

Profit of 10,750.     91,750 - 81000= 10,750/

5 0
3 years ago
Other questions:
  • An organization adopts the ______________ concept when it takes steps to know a much about the consumer as possible, combined wi
    11·1 answer
  • The consumer price index was 177.1 in 2001 and 179.9 in 2002. therefore, the rate of inflation in 2002 was about:
    12·1 answer
  • A recently opened car dealer uses an incentive compensation plan for its sales people. The dealer provides money to its salespeo
    10·1 answer
  • If a taxpayer's pension or annuity includes contributions that were previously included in gross income, the taxpayer may genera
    7·1 answer
  • In 2018, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchase
    7·1 answer
  • Which of the following statements is CORRECT?
    6·1 answer
  • Money to pay current expenses for a municipal revenue bond would normally be placed in which of the following funds? (A) Conting
    5·1 answer
  • Moon Flower Cosmetics Company's executives are aware that their Asian customer base is interested in advanced skin care treatmen
    9·1 answer
  • If you started your own company selling iphone applications, what organizational structure would you create? why?
    6·1 answer
  • Which principle of john rawls is often included on job applications or organizational websites?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!