Answer:
<u>A. elastic;</u> <u>inelastic </u>
Explanation:
Price elasticity of demand refers to degree of responsiveness of quantity demanded of a good with respect to a change in the price. It is mathematically expressed as:
wherein dQ= Change in quantity demanded
dP = Change in price
p = Original Price
q = Original quantity
Total revenue refers to total receipts of a firm from the sale of a good.
When price elasticity of demand is less than 1, it refers to inelastic demand which further means, the change in quantity demanded is less w.r.t change in price.
Similarly, when price elasticity of demand is greater than 1, it signifies change in quantity demanded is more w.r.t change in the price.
In the given case, the cashier thinks lowering prices will increase the total revenue. This indicates the cashier believes the demand to be elastic.
Similarly, the friend's belief of increased prices leading to increased total revenue signifies inelastic demand.
Answer: $168,130
Explanation: selling price = $197,800
Percentage profit = 15%
Profit = 15/100 × 197,800
Profit = 0.15 × 197,800
Profit = $ 29,670
But profit = selling price - cost price.
Hence, cost price = selling price - profit
Cost price = 197, 800 - 29,670
Cost price = $168,130
Cost price is the price the seller paid for the house
Explanation:
An advertising message to be attractive and generate the desired effect, it must reach its potential audience through communication aligned with the interests and desires of the potential audience.
Firstly, as the potential audience is students, it would be ideal to use an advertising communication channel such as social media, where there is a large presence of young people.
It is ideal that advertising involves elements of student culture to generate identification, desire and proximity to the potential audience, so a good choice would be to develop a campaign that involves the product with sports for example, the snack company could be more involved with the culture students, such as sponsoring a college football team and advertising their brand at games, or distributing free snacks at college events.
Answer:
3) former sells similar, although not identical, products.
Explanation:
In a monopolistic competition, there may be many sellers of a specific good, but in order for each firm to possess a monopolistic edge over the other, minute differences may exist between the similar goods. For example, geometrical sets are more or less the same, in terms of content. However, producer A may include a formula sheet, something which producer B may compensate with a timetable sheet. A consumer may wish to buy a geometrical set, but will have to choose between one from producer A or B since they all have different special features. Both producers A and B possess a monopoly of sorts over each other, due to the difference in features. This is called product differentiation. It may be physical, like the one above or perceived, where product A may seem better than product B, though entirely similar, due to A’s massive advertising. Purely competitive firm sells standard product like its competitors.
Answer:
It will increase by 50%
Explanation:
Equity is given as: credit - short market value.
Find attached below table of solution
