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Sedaia [141]
2 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]2 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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Gdp excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
nataly862011 [7]

Answer:

Gdp excludes the most of items that are produced and sold illegally and also most of the items that are produced and consumed at home because the products which are illelegal are not sold under government policies and are not authorised.

Explanation:

GDP: It is been referred as the total value of all the goods and services which has been produced for the marketplace within one year's period and within our national borders.

Measurment of GDP:  

  • It will record only the value of final output of goods no intermediate goods are included in it.
  • The output here is valued only at its market prices.
  • It measures the values of both tangible and intangible services.
  • It measures the values of goods which are produced within the geographic boundaries of country.

Where this GDP is countable:

It is countable only where the products are produced in economy and are being sold legally in the markets.

Excludes the products being sold illegally.

3 0
3 years ago
Formula for average inventory ​
morpeh [17]

The average of inventory is the average amount of inventory available in stock for a specific period.


To calculate the average of inventory, take the current period inventory balance and add it to the prior period inventory balance. Divide the total by two to get the average inventory amount.
6 0
3 years ago
I If you were to advise DreamWorks Classics
motikmotik

<em><u>If I had any advice for DreamWorks Classics, it would be to insist on adopting the 'organic' approach for internationalising Postman Pat.</u></em>

Explanation to the following is as follows;

Postman Pat chronicles the exploits of Pat Clifton, a postal worker for the Royal Mail in the imaginary community of Greendale. This product image is firmly ingrained in British habits and culture; therefore, it is unlikely that Postman Pat would have succeeded if they had followed the ‘born global' path when launching this cartoon.

6 0
3 years ago
Which of the following taxes are paid by the employee and the employer? a.FUTA b.Federal withholding taxes c.SUTA d.FICA
vlabodo [156]

Answer:

The correct answer is letter "D": FICA.

Explanation:

The FICA (<em>Federal Insurance Contributions Act</em>) is a U.S. law that requires a paycheck deduction to be paid to <em>Social Security</em> and <em>Medicare</em>. Employers and employees share half the payment unless an individual is self-employed meaning the full amount must be covered by that person.

8 0
3 years ago
On July 4, Blossom's Restaurant accepts a Visa card for a $150 dinner bill. Visa charges a 2% service fee. Prepare the entry on
Tpy6a [65]

Answer:

The journal entry is shown below.

Explanation:

According to the scenario, the journal entry for the given data are as follows:

Journal entry

Jul.4 Cash A/c Dr    $147

        Card charges A/c Dr.   $3

        To Sales revenue A/c   $150

(Being card transaction is recorded)

Computation:

Cash = $150 - 2% × $150 = $147

Card charges = $150 × 2% = $3

3 0
2 years ago
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