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
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.

You might be interested in
What is a trade off?
gizmo_the_mogwai [7]

a balance achieved between two desirable but incompatible features; a compromise.

4 0
3 years ago
Which of the following behaviors is an example of deviance rather than crime?
Nikitich [7]

I think its either a) or d) Tell me if I’m wrong

5 0
3 years ago
Read 2 more answers
Is Darby doing anything wrong? If so, what? What ethics traps is she facing?
Rom4ik [11]

Answer:

Hello your  question is incomplete attached below is a screenshot of the question

Answer: i) Darby is doing something wrong

              ii) Ethic traps are : Money and Rationalization

Explanation:

Darby is doing something wrong because she is taking the benefits of H associates company for personal purposes. and this totally unethical behavior been exhibited by Darby

The ethics trap faced by Darby are :

Money ; Money is the most influential trap that makes employees engage in most unethical activities because Human beings want more money always

Rationalization : Darby is using the company's facilities for personal use because she feels that her usage of the facilities for personal use won't affect the company negatively

3 0
3 years ago
Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable sta
Solnce55 [7]

Answer: See explanation

Explanation:

Number of units sold = 76000

Percentage repair= 2%

Estimated defective units = Percentage repair × Units sold = 2% × 76000 = 1520

Actual defective units = 490 + 350 + 210 = 1050

Unclaimed warranty = Estimated defective units - Actual defective units = 1520 - 1050 = 470

Repair cost = $50

Warranty expense = 470 × $50 = $23500

The journal entry will then be:

31 December:

Debit: Product warranty expense = $23500

Credit: Estimated liability for product warranty = $23500

3 0
3 years ago
Fuzzy Button Clothing Company reported sales of $820,000 at the end of last year; but this year, sales are expected to grow by 1
ch4aika [34]

Answer:

-$149,214

Explanation:

EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))

A/S = assets / sales = 500,000 / 820,000 = 0.60976

ΔSales = $820,00 x 10% = $82,000

L/S = liabilities / sales = 125,000 / 820,000  = 0.15244

PM = profit margin = 23%

FS = forecasted sales = $902,000

1 - d = 1 - 10% = 0.9

EFN = (0.60976 x $82,000) - (0.15244 x $82,000) - ($902,000 x 0.23 x 0.9) = $ 50,000 - $12,500 - $186,714 = -$149,214

8 0
3 years ago
Other questions:
  • Undertaker enterprises earns $0.17 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. the firm pays o
    11·1 answer
  • As the marketing manager of BargainSmartphones, you're so committed to offering the best bargains that you're willing to show ot
    11·1 answer
  • harry decides to borrow some money from a bank? what type of assignment will harry probably use to secure the loan
    7·1 answer
  • Janitor Supply produces an industrial cleaning powder that requires 48 grams of material at $0.10 per gram and 0.15 direct labor
    11·1 answer
  • Which of the following is true about the Institutional Environment?
    13·1 answer
  • Please help me best answer gets BRAINLIEST
    10·1 answer
  • Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at
    7·1 answer
  • If you deposit $100 of currency into a demand deposit at a bank, this action by itself
    7·1 answer
  • A firm has a market value equal to its book value. Currently, the firm has excess cash of $900 and other assets of $5,100. Equit
    7·1 answer
  • Some consumer researchers focus on one specific trait, such as conscientiousness, that exists across a number of consumers, to p
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!