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Kruka [31]
3 years ago
9

The price elasticity of supply for a good is 3 if a _____ in price leads to a 3% decrease in the quantity supplied. 1% increase

1% decrease 9% decrease 9% increase
Business
1 answer:
Debora [2.8K]3 years ago
5 0

The price elasticity of supply for a good is 3 if a 1% decrease in price leads to a 3% decrease in quantity supplied.

<h3><u>Explanation:</u></h3>

The measure of the response that a supply for goods and services shows after the modification of prices refers to the Price elasticity. When the price of any goods or services increases there will be a rise in the supply of goods and services. When the prices of any goods or services decreases then the supply of those goods and services will also decrease.

Price elasticity also measures the demand that a product or services has based on the modification of the price. When the product tends to be affected by the price changes it is said to be elastic. When it is not responding to the prices of the product the n these are said to be inelastic. In the given example the price elasticity of the supply of a good is said to be 3% and if a 1% decrease in price leads to a 3% decrease in quantity supplied.

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i think the answer is 5

7 0
4 years ago
On July 1 of the current year, Marcia purchases a new home and borrows $320,000. Marcia is required to pay two points on the loa
snow_lady [41]

Answer:

D) $6,400

Explanation:

To calculate the points deducted by Marcia in the current year, we use the following method

Since she collected the loan in July of the current year, there is five (5) months remaining in the current year, for Marcia to deduct any point, the will need to divide the number of month(s) remaining by the money she borrowed while we have have as;

$320,000/ 5

= $64,000

7 0
3 years ago
Read 2 more answers
A firm in the market for designer jeans has some degree of monopoly power. The demand curve it faces has a price elasticity of d
natali 33 [55]

A rule of thumb is used to determine if the monthly rent earned from a piece of investment property will exceed that property's monthly mortgage payment.

Using the rule of thumb pricing the profit-maximizing price of a monopoly firm is = P = MC/1+(1/Ed)

Ed is the elasticity of demand for a firm, not the market. So,

Ed = -3.P = $50/1+ (1/(-3)) = $50/(1-1/3)p = 50/(2/3 ) = $75 dollar.

Monopoly power (also known as market power) refers to the ability of a company to charge a price higher than its marginal cost. Monopoly power usually exists when demand is less elastic and barriers to entry are large.

There are three main sources of monopoly power: (1) price elasticity of demand (Ed), (2) number of companies in the market, and (3) interaction between companies. The price elasticity of demand is the most important determinant of market power for price rules: L = (P – MC) / P = -1 / Ed.

Learn more about monopoly power here: brainly.com/question/13113415

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8 0
2 years ago
MC Qu. 11-62 The following data are taken from the stockholders'... The following data are taken from the stockholders' equity s
Nesterboy [21]

Answer:

On average the firm issued shares at $15 dollars each

Explanation:

the treasury stock are purchased at the market price which is not the same as the issuance price thus, we ignore it.

the company issued 33,600 shares with par value of $10

from which it has $168,000 additional paid-in

In total: 33,600 x $10 = 336,000

                                <u>   +  168,000  </u>

Total paid-in                   504,000

504,000 / 33,600 = <em>$15</em>

7 0
4 years ago
When is the best time to consider diversification for a company? A. The company has strong competitive position in its industry
Advocard [28]

Answer: A. The company has strong competitive position in its industry and industry growth is sluggish.

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Diversification in corporate is a strategy that a company implement to increase market shares and sale volume by introducing new product in another industry and market different from the one they are operating.

5 0
3 years ago
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