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Cerrena [4.2K]
3 years ago
11

The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of

beef will cause the quantity of beef demanded to _____.
Business
1 answer:
givi [52]3 years ago
3 0

Answer:

Quantity of beef demanded will decrease by 12%

Explanation:

Data provided in the question:

Price elasticity of demand for beef, Ed = 0.60

Increase in the price of beef = 20%

Now,

Price elasticity of demand for beef,

Ed = [ Percentage change in Quantity ] ÷ [ Percentage change in price  ]

or

0.60 = [ Percentage change in Quantity ] ÷ 20%

or

Percentage change in Quantity = 0.60 × 20%

or

Percentage change in Quantity = 12%

Also,

Price and Quantity are inversely proportional

Hence,

With the increase in price, the quantity will decrease

Therefore,

Quantity of beef demanded will decrease by 12%

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Susan can pick 4 pounds of coffee in an hour or gather 2 pounds of nuts. tom can pick 2 pounds of coffee in an hour or gather 4
Kryger [21]

Answer: Total earning is $96 for both Susan and Tom

Explanation:

Susan can pick 4 pounds of coffee or 2 pounds of nuts.

Tom can pick 2 pounds of coffee or 4 pounds of nuts.

Price of Coffee = $2 per pound

Price of Nuts = $2 per pound

Opportunity cost of producing coffee for Susan = 2/4 = 0.5

Opportunity cost of producing coffee for Tom = 4/2 = 2

Opportunity cost of coffee is low for Susan, so she has a comparative advantage in it.

So, Susan produces 6*4 = 24 pounds of coffee, total revenue from sale of coffee is $24*2 = $48

Opportunity cost of producing Nuts for Susan = 4/2 = 2

Opportunity cost of producing Nuts for Tom = 2/4 = 0.5

Opportunity cost of coffee is low for Tom, so he has a comparative advantage in it.

So, Tom produces 6*4 = 24 pounds of nuts, total revenue from sale of nuts is $24*2 = $48

So, total earning = $48+$48 = $96

5 0
3 years ago
As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marg
Degger [83]

Answer:

last

equal

Explanation:

A profit maximising producer would produce up to the point where the marginal product of the last unit of factor employed equals the factors price.

After, this point is reached, diminishing returns sets in

7 0
3 years ago
Which form of business ownership is the most complex and difficult to form, and why?
Finger [1]
Honestly I would say being an entrepreneur is the most complex and difficult to form, especially if you're trying to build from the ground up it can take a matter of 4-5 maybe more years, this isn't a "answer" ore of an "opinion." 

Hope this helped though! 
6 0
3 years ago
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption
bezimeni [28]

Answer:

There is no change in investment for Apletra.

Explanation:

Because GDP, consumption, and government spending remains the same there would also be no chane in investment for Alpletra.

5 0
3 years ago
How you can predict the way your current health decisions will affect your health in the future?
daser333 [38]
In my case, I know from experience and heredity that for example my father died of a second heart attack at least partly because of his high cholesterol. The high cholesterol was related to his high metabolism so that he ate a lot of eggs and bacon when young so that probably produced a lot of bad cholesterol. Myself I also have a tendency to high cholesterol and was warned by my dad's doctor to watch it so consequently I mostly avoid dairy products and egg yolk and beef (red meat) and am mostly able to control it that way with diet so haven't had a heart attack yet.
7 0
3 years ago
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