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Sedaia [141]
3 years ago
8

Your younger sister needs $50 to buy a new bike. She has opened a lemonade stand to make the money she needs. She currently is c

harging 25 cents per cup, but she wants to adjust her price to earn the $50 faster. If you know that the demand for lemonade is elastic, what is your advice to her?
Business
1 answer:
AleksandrR [38]3 years ago
5 0

The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".

The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>

In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.

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In Wisconsin, the way the state has balanced its budget led to large protests. Certain interest groups claimed that they have bo
Leto [7]

Answer:

<u>Equity</u>

Explanation:

Equity in a financial budget would refer to those financial policies relating to taxation of incomes and investments, spendings , etc which are formulated after taking into account the interests of all the sections of the society.

If a budget is favorable to the rich or to the poor, the budget is biased and unbalanced and thus lacks the essential criteria of equity which is justness and fairness to all.

In the given case, a certain section of the masses felt unfair amount of financial burden. Hence, as per the section, the budget is unfair or unequal i.e it burdens one section more than others.

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3 years ago
Dan buys a property for $260,000. he is offered a 30-year loan by the bank, at an interest rate of 6% per year. what is the annu
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20,280 is the right answer
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3 years ago
Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balanc
kifflom [539]

Answer:

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

Explanation:

Accounts Receivables Turnover ratio = \frac{Net \:Credit \: Sales}{Average \: Receivables}

Here Net Credit Sales = $6.5 million

Accounts Receivables Opening Balance = $600,000

Accounts Receivables Closing Balance = $700,000

Average Accounts Receivable Balance = \frac{600,000 \:+ 700,000}{2} = 650,000

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

This shows that accounts receivables are on an average 1/10th of credit sales.

Final Answer

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

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Both a recessionary gap and cyclical unemployment.

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Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans?

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the discount rate is the interest rate that the Federal Reserve System charges banks for the loans it makes. The overnight rate or the federal funds rate is even lower, but it lasts a few hours only.

Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply.

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the higher the interest rate, the lower the increase in the money supply.

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3 years ago
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