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3 years ago

If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:

Business

1 answer:

OLEGan [10]3 years ago

8 0

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

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Think about what happened to Standard Oil. Write a paragraph in which you explain whether or not you agree with the actions take

hoa [83]

The United States government was correct in interfering with the growth of Standard Oil. Not only was the company taking advantage of existing situations, but eventually it would have controlled the oil market entirely. If Standard Oil was able to gain control of the market for a long period of time, consumers could have had to pay extremely high prices for the oil that they needed, limiting their purchase of other goods. Or Sample response: The United States government should not have interfered with the growth of Standard Oil. Because the company had managed to reduce production costs, it was able to offer very low prices to consumers. This benefited many Americans. Without the company's production benefits, citizens were not able to take advantage of this infrastructure.

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3 years ago

The short-run effect of consumers becoming more pessimistic will be for the

Bogdan [553]

Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

7 0

3 years ago

How does supply and demand, scarcity and economic measurement affect (LLC only) and as well as the costs associated with your bu

julsineya [31]

Answer: If you think the concepts of supply and demand are just relevant for macro economists, you’re probably missing a few ways to improve your small business. Understanding the importance of supply and demand in business terms will help you better plan your pricing, production and marketing.

Explanation: Put in your own words so that they dont see this answer because my teachers check the internet for plagiarism.

5 0

2 years ago

Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of u

Travka [436]

Answer:

Budgeted overhead= $283,400

Explanation:

Giving the following information:

Production:

October= 192,000

variable overhead is applied at a rate of $0.70 per unit of production.

Fixed overhead equals $149,000 per month.

To calculate the budgeted overhead, we need to determine the total variable overhead for the month:

Budgeted overhead= fixed overhead + total variable overhead

Budgeted overhead= 149,000 + 0.7*192,000

Budgeted overhead= $283,400

6 0

3 years ago

Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 perce

Dimas [21]

Answer:

Machine A; because it will save the company about $13,406 a year

Explanation:

The computation is shown below:

Equate Annual Cost = PV of Cash Outflow ÷ PVAF (r%, n)

For Machine A:

Year CF PVF at 14.6% Disc CF

0 $3,18,000.00 1.0000 $3,18,000.00

1 $ 8,700.00 0.8726 $7,591.62

2 $8,700.00 0.7614 $6,624.45

3 $ 8,700.00 0.6644 $ 5,780.50

PV of Cash Outflow $3,37,996.58

PVAF(14.6%,3) 2.2985

PV of Cash Outflow $1,47,053.69

For Machine B:

Year CF PVF at 14.6% Disc CF

0 $2,47,000.00 1.0000 $2,47,000.00

1 $9,300.00 0.8726 $8,115.18

2 $9,300.00 0.7614 $7,081.31

PV of Cash Outflow $2,62,196.49

PVAF(14.6%,2) 1.6340

PV of Cash Outflow $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0

3 years ago