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slavikrds [6]
3 years ago
11

Other things equal, demand tends to be more __________ the more substitutes there are available, and more _________ when the hig

her the proportion of the consumer’s income spent on the good.
Business
2 answers:
melamori03 [73]3 years ago
6 0

Answer:

Elastic/ Inelastic

Explanation:

Price elasticity of demand is a tool use to measure in economics to show the elasticity, or responsiveness, of the demanded quantity of goods or services to increase in its price. When the price of a good or service changes, inelastic demand is when the buyer's demand does not change when the price of the good or service changes.

nasty-shy [4]3 years ago
5 0

Answer:

Elastic, inelastic

Explanation:

Other things equal, demand tends to be more elastic the more substitutes there are available, and more inelastic when the higher the proportion of the consumer’s income spent on the good

One of the factors determining the price elasticity of demand for the good is the number of substitutes. More substitutes equal to more elastic demand.

general, the more good substitutes there are, the more elastic the demand will be. For example, if the price of lux soap went up by $0.25, consumers might replace their soap with a cheaper brand. This means that lux soap is an elastic good because a small increase in price will cause a large decrease in demand as consumers start buying other brands instead of lux soap.

When demand for a good or service is static when its price or other factor changes, it is said to be inelastic. So when the price goes up, consumers will not change their buying habits. The same applies when the price goes down.

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Jim is evaluating project that will pay him $5,000 per year for 5 years, and then cost him $4,000 per year for 12 years. Jim’s o
FinnZ [79.3K]

Answer:

4.25%

Explanation:

We need to calculate the net present value of the cash flows to determine the  IRR.

NPV = PV of Cash inflows - PV of Cash outflows

As the cash inflow and outflow are fixed for specific period of time so, we will use the annuity formula to calculate the NPV.

NPV = [ $5,000 x ( 1 - ( 1 + 18% )^-5) /18% ] - [ ( $4,000 x ( 1 - ( 1 + 18% )^-12) /18%) x ( 1 + 18%)^-6 ]

NPV = $15,636 - $7,102 = $8,534

We need NPV on a higher rate of 10%

NPV = [ $5,000 x ( 1 - ( 1 + 10% )^-5) /10% ] - [ ( $4,000 x ( 1 - ( 1 + 10% )^-12) /10%) x ( 1 + 10%)^-6 ]

NPV = $18,954 - $15,385 = $3,569

IRR = Lower rate + [ Lower rate NPV / (Lower rate NPV - Higher rate NPV) ] (higher rate - lower rate)

IRR = 10% + [ 3,569 / ($3,569 - $8,534) ] (18% - 10%)

IRR = 4.25%

4 0
3 years ago
HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk
ELEN [110]

Answer:

12%

Explanation:

For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:

Weight of capital structure

For debt  

= $200 million ÷ $400 million

= 0.50

For equity

= 50 million × $4 ÷ $400 million

= 0.50

Now the WACC is

= 0.50  11% + 0.50 × 5%

= 8%

Since the value fo equity is declined by

= 50 × $3

= $150

Now the equity cost of capital is

= WACC + (WACC - interest rate) × (debt ÷ equity)

= 8% + (8% - 5%) × (200 ÷ 150)

= 12%

6 0
3 years ago
What pricing strategy could work well in any market, primarily by generating buyer interest?
hram777 [196]

Any market could benefit from the pricing approach known as price elasticity of demand, particularly if it can attract customers.

How a change in price impacts consumer demand is assessed using the price elasticity of demand.

A product is deemed inelastic if people continue to buy it in spite of a price increase (such as with cigarettes and fuel).

Contrarily, elastic goods are subject to price changes (such as cable TV and movie tickets).

The formula: % Change in Quantity % Change in Price = Price Elasticity of Demand can be used to determine price elasticity.

You can determine whether your product or service is responsive to price changes using the idea of price elasticity. Your product should ideally be inelastic, meaning that demand won't change even if prices do.

Learn more about price elasticity of demand here.

brainly.com/question/28203114

#SPJ4

3 0
2 years ago
ice Manager uses a Periodic Review Inventory System: they check the inventory in the Office Supply Closet once every 10 days, pl
gladu [14]

Answer:

910 days

Explanation:

Calculation to determine the Minimum Restocking Level needed to cover expected demand over time without stocking out

Using this formula

Minimum Restocking Level= (Average daily demand × Reorder period)+ (Average daily demand × Lead time)

Let plug in the formula

Minimum Restocking Level= (70 days × 10 days) + (70 days × 3 days)

Minimum Restocking Level=700 days + 210 days

Minimum Restocking Level= 910 days

Therefore the Minimum Restocking Level needed to cover expected demand over time without stocking out is 910 days

4 0
3 years ago
Which of the following costs should be excluded from research and development expense?
DENIUS [597]

Answer:

can you help me with my problem

5 0
2 years ago
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