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satela [25.4K]
3 years ago
11

In​ 1916, the ford motor company sold​ 500,000 model t fords at a price of​ $440. henry ford believed that he could increase sal

es of the model t by​ 1,000 cars for every dollar he cut the price. use this information to calculate the price elasticity of demand loading... for model t fords. use the midpoint formula in your calculation. assuming the price decreases by​ $1 and the quantity increases by 1000​ cars, the price elasticity of demand for model t fords is nothing ​(enter your response rounded to two decimal​ places).
Business
1 answer:
quester [9]3 years ago
6 0
For the answer to the question above,
we must use this formula,
(New - Old)/ (Ave. of New and Old)

In this case,
501k -500k/(500,500(which is the ave. of the two.
Then it would be 1k/500,500

Then the answer would be .0020
Then
-1.439.5/439.5 because this is the average of the two.
so the answer would be .0023

Then finally divide the rate on change of quantity by the rate of change in price which is
0.002/-0.0023

Then the answer would be -.87

So the elasticity on the demand of model T is .87 ( remove the negative because elasticity is always positive.)

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You expect to receive year-end bonuses of $8,000 at the end of this year, $16,000 at the end of year 4, $20,000 at the end of ye
yulyashka [42]

Answer:

Total PV= $46,728.79

Explanation:

Giving the following information:

Cash flow:

Cf1= $8,000

Cf4= $16,000

Cf8= $20,000

Cf10= $25,000

Discount rate= 6%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf1= 8,000/(1.06^1)= 7,547.17

Cf4= 16,000/(1.06^4)= 12,673.50

Cf8= 20,000/(1.06^8)= 12,548.25

Cf10= 25,000/(1.06^10)= 13,959.87

Total PV= $46,728.79

7 0
3 years ago
A six-month moving average forecast is generally better than a three-month moving average forecast if demand: Group of answer ch
Lostsunrise [7]

A six-month moving average forecast is generally better than a three-month moving average forecast if demand: is rather stable.

<h3>What is stable demand?</h3>

This is the type of demands that occurs where by there is no change in the demand over a period of time.

The stable demand is known to have the same shape or remain the same way for a period of time.

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6 0
2 years ago
If an unauthorized withdrawal was made from a checking account the customer will
Crazy boy [7]
Lock the card, and contact the bank.
7 0
3 years ago
When a person receives an increase in wealth, what is likely to happen to consumption and saving?
Arturiano [62]

When a person receives an increase in wealth, Consumption increases and saving decreases

Both present and future consumption rises as a consumer's current income does as well. Savings increase because current spending increases but does so at a slower rate than current income growth. Again, both present and future consumption rises when the customer receives an increase in predicted future income.

Savings declines because current consumption rises while current income does not. Current and future consumption both grow when the consumer's wealth increases. Again, because current income has not increased, saving has decreased. These individual actions to adjust one's consumption and saving habits have a cumulative effect on the aggregate amount of desired consumption and saving.

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8 0
2 years ago
A natural monopoly exists when a single seller experiences ____________ average total costs than any potential competitor.
vlabodo [156]

Answer:

lower

Explanation:

A natural monopoly appears when there are high entry costs like large infrastructure costs or economies of scale where a company can provide the products at a lower costs than others which provides a big advantage to the firm in the market and makes it difficult for any potential competitor to be able to compete. According to that, the answer is that a natural monopoly exists when a single seller experiences lower average total costs than any potential competitor as this represents a barrier for the competitor to be able to enter the market.

3 0
3 years ago
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