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3 years ago

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

Business

1 answer:

kenny6666 [7]3 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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vlabodo [156]

Answer:

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Explanation:

The Production Budget can be used to determine the number of units that needs to be manufactured in order to meet Sales and Inventory targets as follows :

Production Budget for Next Year

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Add Closing Finished Goods Inventory 60,000

Total 570,000

Less Opening Finished Goods Inventory (70,000)

Budgeted Production 500,000

Therefore,

The number of units it would have to manufacture during the year would be 500,000

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Answer:

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Masja [62]

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1 year ago

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Explanation:

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3 years ago

Issued 150,000 shares of common stock in exchange for $750,000 cash. Purchased office equipment at a cost of $121,250. $48,500 w

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Answer:

1. Recorded depreciation expense:

Debit Depreciation expense $2,425

Credit Accumulated depreciation account $2,425

2. Recorded the amount of prepaid insurance that expired for the month

Debit Insurance Expense $300

Credits Prepaid Insurance $300

Explanation:

1. Recorded depreciation expense:

Debit Depreciation expense $2,425

Credit Accumulated depreciation account $2,425

2. Recorded the amount of prepaid insurance that expired for the month

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