Answer:
-0.33
Explanation:
The calculation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 80 units - 100 units
= -20 units
And, the average of quantity demanded would be
= (80 units + 100 units) ÷ 2
= 90 units
Change in price is
= P2 - P1
= $2 - $1
= 1
And, the average of the price is
= ($2 + $1) ÷ 2
= 1.5
So, after solving this, the price elasticity of demand is -0.33
Answer:
A) Total assets increase $350,000.
Explanation:
The total assets will increase by $350,00 since:
- buildings will increase by $370,000: (10,000 stocks x $35 per stock) + $20,000 paid in cash = $350,000 + $20,000 = $370,000
- cash will decrease by $20,000
Equity should also increase by $350,000 since 10,000 new stocks were issued and their fair market value was $35 per stock = 10,000 x $35 = $350,000
Answer:
It is true that raising gasoline prices (either by producing less of it, or by adding taxes) would reduce gasoline use. The concept of price elasticity of demand can helps us explain why.
Explanation:
A good can be either elastic or inelastic depending on its price elasticity of demand. A price elasticity of demand of less than 1 is considered inelastic, while a price elasticity of demand higher than 1 is considered elastic.
Elastic goods are those whose quantity demanded falls or rises more than the price. Inelastic goods are those whose quantity demanded falls or rises less than the price.
Gasoline is a inelastic good in the short-term because even with a price hike, most people will still buy gasoline because they need to move around. However, in the long-term, gasoline becomes more elastic because people replace their buy electric cars, or cars that use less fuel, etc.
What this tells us is that raising gasoline prices can reduce gasoline use in the long-term.
A built-in injustice in this measure is that it affects the poor disproportionally. Poor people also need cars to get around, and a rise in the gasoline price means that they have less money for other basic needs.
I believe the answer is A.) Utilities
Answer:
$23,000
Explanation:
The gross domestic product is the value of the products and services that a certain country produces in a certain period of time, in this case the GDP increase that these transactions made would be $23,000 eventhough they all had to do with the same natural resource, economy grew because of it, George gained $5,000, Patty gained $8,000 and the restaurants made $10,000 out of it