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8090 [49]
3 years ago
7

Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he

bakes himself. At a price of $2.75 each, he sells 250. At a price of $2.25 each, he sells 300. A. What is the elasticity of demand?
B. Is demand elastic or inelastic over this price range?
C. If demand had the same elasticity for a price decline from $2.25 to $1.75 as it does for the decline from $2.75 to $2.25, would cutting the price from $2.25 to $1.75 increase or decrease Danny's total revenue?
Business
1 answer:
Marina86 [1]3 years ago
5 0

Answer:

A) PED = 1.1

B) demand is elastic

C) Danny's total revenue would decrease

Explanation:

we can calculate the price elasticity of demand using the formula:

PED = % change in quantity demanded / % change in price = [(300 - 250) / 250] / [(2.25 - 2.75) / 2.75] = (50 / 250) / (-0.5 / 2.75) = 0.2 / 0.18 = 1.1

since PED = 1.1, the demand is elastic

if the PED is the same when the price decreases from $2.25 to $1.75, total revenue will    :

when price = $2.25, total revenue = $2.25 x 300 = $675

when price = $1.75, total revenue = $1.75 x 373 = $652.75

*a 22.22% decrease in the price will cause a 24.44% increase (= 22.22% x 1.1) in the quantity demanded = 300 units + (300 x 24.44%) = 373.3 ≈ 373 units

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A+piece+of+land+produces+an+income+that+grows+by+5%+per+annum. +if+the+first+year’s+income+is+$10,000,+what+is+the+value+of+the+
Aleonysh [2.5K]

If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

<h3>Present value of the land</h3>

Using this formula

Present value=Income/Rate per annum

Let plug in  the formula

Present value=$10,000/0.05

Present value=$200,000

Therefore If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

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6 0
1 year ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
some organizations have platforms that allow employees to provide an anonymous feedback about the organ Behavior colleagues and
cestrela7 [59]

The platforms that gives an employees an opportunity to provide an anonymous feedback about the colleagues behavior is known as  <u>whistleblowing platform</u><u>.</u>

<h3>What is whistle-blowing?</h3>

In a formal setting, a whistle-blow refers to a platform that allows people to tell authorities that the some people or group one is working for are doing something immoral or illegal.

In conclusion, this platform ensures a protection of whistle-blower nevertheless.

Read more about whistle-blower

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3 0
2 years ago
Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggesti
Brut [27]

Answer:

a) employees can be motivated by open communication.

Explanation:

The answer is that Howie does not realize that employees can be motivated by open communication because by asking employees suggestions as to how jobs could be restructured to improve productivity, John Noble is trying to have a direct communication allowing employees to express their thoughts which will make them feel as part of the company and valued which will result in them feeling motivated to perform well in their job.

The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.

4 0
2 years ago
Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc
Andrew [12]

Answer:

I could not find the exact details related to this question so here is a similar question to guide you.

Goodwill = Acquisition Price - Net book value (Investee)

= 75,000 - ( Assets - Liabilities)

= 75,000 - ( 90,000 - 40,000)

= $25,000

Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.

= 10,000 ( 1 - 40%)

= $6,000

Net Goodwill = 25,000 - 6,000

<h2>= $19,000</h2>

8 0
3 years ago
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