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nasty-shy [4]
2 years ago
15

A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases from 60 to 100. The price

elasticity of demand using the midpoint formula is therefore
Business
1 answer:
tiny-mole [99]2 years ago
7 0

Answer:

Explanation:

In using the midpoint method to calculate price elasticity , the average percentage change in the price and quantity are used

formula = percentage change in quantity = (Q2 -Q1/(Q2+Q1)/2)*100

Percentage change in price = ( P2 -P2/(P2-P1)/2)*100

Price changes = $1.5 to $1.3

Quantity changes = 60 to 100

Percentage in price = (1.3-1.5 /(1.5+1.3)/2 )*100

(-0.2/1.4)*100 =-14.29%

Percentage in quantity = (100-60/(100+60)/2)*100

40/80*100 = 50%

Therefore , price elasticity of demand = 50/-14.29 = -3.5

With the elastic interval being less than 1 , it means that it is an inelastic  demand

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The potential advantages of traditional mail surveys are quick response and lower cost than online surveys, but this advantage h
AURORKA [14]

Answer:False

Explanation:

The potential advantage of online surveys are quick response rate and low cost than traditional surveys. This statement contradicts the above stamement.

Online surveys has faster medium to reach the target audience,cost-efficient.These are characteristics of online survey not traditional survey

So therefore it is false

8 0
3 years ago
Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10
PolarNik [594]

Answer:

the store rent that should be allocated in department 3 is $100000

Explanation:

if we assume that we charge the rent per square feet occupied, then we can say

department rent = charge per square feet* number of square feets

r = k*sf

also if

total rent = rent department 1 + rent department 2  + rent department 3

r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)

k= r total / ( sf1 + sf2 + sf3)

replacing values

k = $200000/(15000 sq.ft + 10000 sq.ft +25000 sq.ft ) = $ 4 per sq.ft

thus for department 3

r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000

rent department 3 = $100000

8 0
3 years ago
The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchase
umka21 [38]

Answer:

It is more profitable to raise the selling price by $2.

Explanation:

To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>

Sales revenue= selling price * number of units

<u>Current:</u>

Sales revenue= 5.5*2,200= $12,100

<u>Proposal:</u>

Sales revenue= 7.5*1,800= $13,500

It is more profitable to raise the selling price by $2.

7 0
3 years ago
Which of the following criteria is most descriptive of a private liberal arts college?
Harlamova29_29 [7]
For the answer to the question which of the following criteria is most descriptive of a private liberal arts college. The answer is multiple choice letter <span>D. Personal attention from instructors in smaller classes.

I hope my answer helped you. Have a nice day!</span>
3 0
2 years ago
Read 2 more answers
Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje
liberstina [14]

Answer:

(a) Cash payback period:

     Project Red = 5.5 years

     Project blue  = 4.6 years

(b) Net present value for project Red = $19,760

     Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue  =18.75%

(d) Project Blue

Explanation:

Given Data;  

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red  Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

                                                       = 55,000

Annual depreciation Project Blue = (640000/8)

                                                       =  80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

                   = 5.5 years

Project blue = 640000/ 140000

                    = 4.6 years

(b)

Project Red  Present value of cash inflows = 80000 ×5.747

                                                                       = $459,760

Project Blue Present value of cash inflows  =140000×5.747

                                                                        = 804580

Net present value for project Red = $459,760 - $440,000

                                                        = $19,760

Net present value for project Blue = 804580 - $640,000  

                                                         =$164,580

(c) Annual rate of return:

Project Red   = $25,000 / ($440000)/2

                       =11.36%

Project Blue =  $60000/(640000/2)

                    =18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

6 0
3 years ago
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