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4 years ago

If the estimated price elasticity of demand for foreign travel is 4:

Business

1 answer:

kenny6666 [7]4 years ago

7 0

Answer:

b. a 20% decrease in the price of foreign travel will increase the quantity demanded by 80%.

Explanation:

A price elascitiy of 4 means demand is elastic. Price elasticity greater than 1 indicates demand is elastic.

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

Elastic demand is when a change in price leads to a change in quantity demanded.

If price increases and demand is price elastic, the quantity demanded falls.

If price falls and demand is price elastic, the quantity demanded rises.

If price elasticity is 4, 20% decrease in the price of foreign travel will increase the quantity demanded by 80%.

Inelastic demand is when price elasticitiy is less than 1.

I hope my answer helps you

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Answer:

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Explanation:

Giving the following information:

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In nominal terms, the increase in income is equal to the difference between salaries.

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In other terms, the real purchasing power of the MBA income decreases. Therefore, the difference today between real salaries is lower than the nominal difference.

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3 years ago

Cobe Company has already manufactured 21,000 units of Product A at a cost of $15 per unit. The 21,000 units can be sold at this

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Answer and Explanation:

The computation is shown below;

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The $1,372,000 is come from

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3 years ago

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3 years ago

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4 years ago

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Explanation:

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3 years ago

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